{"id":418438,"date":"2022-03-19T12:15:00","date_gmt":"2022-03-19T09:15:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitcoin-beats-owning-coin-stock-by-20-since-coinbase-ipo\/"},"modified":"2022-03-19T12:15:00","modified_gmt":"2022-03-19T09:15:00","slug":"bitcoin-beats-owning-coin-stock-by-20-since-coinbase-ipo","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitcoin-beats-owning-coin-stock-by-20-since-coinbase-ipo\/","title":{"rendered":"# Bitcoin beats owning COIN stock by 20% since Coinbase IPO"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3c806b603e5\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3c806b603e5\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-beats-owning-coin-stock-by-20-since-coinbase-ipo\/#%E2%80%9D_Bitcoin_beats_owning_COIN_stock_by_20_since_Coinbase_IPO_%E2%80%9C\" >&#8221; Bitcoin beats owning COIN stock by 20% since Coinbase IPO &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-beats-owning-coin-stock-by-20-since-coinbase-ipo\/#Whats_bothering_Coinbase\" >What&#8217;s bothering Coinbase?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-beats-owning-coin-stock-by-20-since-coinbase-ipo\/#Bitcoins_risks_are_entirely_different\" >Bitcoin&#8217;s risks are entirely different<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Bitcoin_beats_owning_COIN_stock_by_20_since_Coinbase_IPO_%E2%80%9C\"><\/span>&#8221; Bitcoin beats owning COIN stock by 20% since Coinbase IPO &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-128018ef>Buying a Coinbase stock (COIN) to gain indirect exposure in the Bitcoin (BTC) market has been a bad strategy so far compared to simply holding BTC.\u00a0<\/p>\n<p>Notably, COIN is down by nearly 50% to almost $186, if measured from the opening rate on its IPO on April 14, 2021. In comparison, Bitcoin outperformed the Coinbase stock by logging fewer losses in the same period \u2014 a little over 30% as it dropped from nearly $65,000 to around $41,700<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-03\/2243c0b0-8b18-40ac-b4fd-70e1d30e5bb7.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>BTC\/USD (orange) vs. COIN price (blue). Source: TradingView<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Whats_bothering_Coinbase\"><\/span>What&#8217;s bothering Coinbase?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The correlation between Coinbase and Bitcoin has been largely positive to date, however, suggesting that many investors consider them as assets with similar value propositions. That is <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/time.com\/nextadvisor\/investing\/cryptocurrency\/how-to-invest-in-crypto-without-buying-any-crypto\/\">primarily due to the buzz<\/a> around how COIN could become a simpler onboarding experience for investors into the crypto sector compared to buying Bitcoin, Ether (ETH), and\u00a0other digital assets.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-03\/e864ae2c-fb10-4308-8857-2d27a9b49576.png\"><figcaption style=\"text-align: center;\"><em>COIN&#8217;s correlation with BTC on daily basis. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>But the COIN product is facing increasing competition with the arrival of crypto-based exchange-traded products (ETP), mining stocks,\u00a0and similar crypto-enabled firms listed across Wall Street indexes. This may have reduced its demand as the go-to asset for gaining crypto exposure.<\/p>\n<p><strong><em>Related:\u00a0Bitcoin faces new \u2018milestone\u2019 in 2022 as new forecast predicts BTC price \u2018in the millions\u2019<\/em><\/strong><\/p>\n<p>Additionally, COIN faces downside risks due to its depressive forecasts for FY22. Coinbase stated in its latest earnings report that the crypto volatility could turn 2022 into an unprofitable year, noting their adjusted EBITDA losses could come to be around $500 million if its monthly transaction users come at the lower end of its guidance range.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-03\/5ed81753-2ac8-41ad-864c-103b0b8e23a2.png\"><figcaption style=\"text-align: center;\"><em>Coinbase&#8217;s adjusted EBITDA margins. Source: JR Research<\/em><\/figcaption><\/figure>\n<p>Jere Ong, the principal analyst and founder of JR Research, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/seekingalpha.com\/article\/4493683-coinbase-stock-buy-sell-recent-earnings\">noted<\/a> that 96% of Coinbase&#8217;s total revenue in Q4\/2021 came from the fees charged on retail transactions, which highlights its business model&#8217;s &#8220;inherent weakness.&#8221; Excerpts from his report:<\/p>\n<blockquote><p>&#8220;We believe it offers a short-term buying opportunity for speculative investors. But, we do not encourage investors to hold COIN stock for the long term unless you have a very high conviction of its execution.<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Bitcoins_risks_are_entirely_different\"><\/span>Bitcoin&#8217;s risks are entirely different<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Bitcoin is a different beast when compared to the shares of centralized company like Coinbase. <\/p>\n<p>Absolute scarcity, censorship-resilient decentralized ledger, and gold-like properties as a potential\u00a0hedge against-inflation\u00a0in the digital age are just some of the concepts driving up BTC price today.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">With 7.5% inflation and real inflation numbers at 19.5% (shadowstats) the fed is doing a great job! Just 100x more, and they will be at Paul Volcker&#8217;s level of 30% interest rates!!! Got <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#Bitcoin<\/a>? <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/qesZ2iU0Mv\">pic.twitter.com\/qesZ2iU0Mv<\/a><\/p>\n<p>\u2014 Davinci Jeremie (@Davincij15) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Davincij15\/status\/1504406707136569349?ref_src=twsrc%5Etfw\">March 17, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>As a result, analysts and strategists\u00a0predict Bitcoin to reach anywhere from zero to &#8220;millions&#8221; per 1 BTC, depending on who you ask.<\/p>\n<p>Elsewhere, most of the crypto-exposure stocks have also suffered more compared to Bitcoin. Namely, Nasdaq-listed mining firms Canaan, whose stock value fell by nearly 80% year-over-year, and Riot Blockchain, which dropped 67.55% in the same period.<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/bitcoin-beats-owning-coin-stock-by-20-since-coinbase-ipo\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Bitcoin beats owning COIN stock by 20% since Coinbase IPO &#8220; Buying a Coinbase stock (COIN) to gain indirect exposure in the Bitcoin (BTC) market has been a bad strategy so far compared to simply holding BTC.\u00a0 Notably, COIN is down by nearly 50% to almost $186, if measured from the opening rate on&#8230;<\/p>\n","protected":false},"author":1,"featured_media":418439,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDMvYWFhNTM1NWUtNDEyNi00MTQxLTgwZTctNzQ4NTdlZTE0ZjNiLmpwZWc=.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[79806,74862,81951,74989,74937,74956,74860,75849,75917,74939,75150,75042,75164,75566,92393,76514,70551,73711,73785,70359],"class_list":["post-418438","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-analysis","tag-bitcoin","tag-bitcoin-analysis","tag-bitcoin-mining","tag-bitcoin-price","tag-coinbase","tag-cryptocurrency-exchange","tag-etf","tag-exchanges","tag-market-analysis","tag-market-update","tag-mining","tag-price-analysis","tag-report","tag-safe-haven","tag-stock-market-indexes","tag-inflation","tag-investments","tag-markets","tag-stocks"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/418438","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=418438"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/418438\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/418439"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=418438"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=418438"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=418438"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}