7.8 billion was how much Coinbase made in 2021.
3 billion was the profit.
Up 550% in revenue from 2020.
Up 2,677% in profit.
User rates are also way up, where the company reports 98 million users globally.
Up from 56 million at the start of 2021.
E-Trade has 5.2 million users.
Robinhood has 22 million users.
Chase has 58 million digital users.
Coinbase exploded in 2021, but now as quick as it came, rumors of a collapse are hitting.
The company made 1.1 billion in quarter one of 2021.
Down 56% from the 2.5 billion made the previous quarter.
Also, down 39% from the 1.8 billion in the first quarter of 2021.
Losses also hit, where Coinbase lost 430 million in the first quarter of 2021.
Comparing that, they made 800 million in the last three months of 2021 and 300 million the first three months.
The reason being entirely the price of Bitcoin and market for crypto as a whole.
In 2017, Bitcoin has the highest average in its history at $13,000 a coin in December of 2021.
That crashed, where one year later Bitcoin averaged $3,700 a coin.
They made 1 billion in 2017, where they surged the second half of that year.
2018, revenue dropped to 520 million and the company had reported losses.
Right now, crypto overall is in a drop and if it’s comparable to 2017 going into 2018, Coinbase suffers and could collapse.
Even worse, the company said that’s possible.
They came out saying in the event of bankruptcy, Coinbase users could lose their crypto.
Coinbase has 256 billion stored on it.
A comparison would be MtGox, which imploded in 2014, with 850,000 Bitcoin lost, which at the time were worth about 250 million.
Coinbase crashing would quite literally be 1,000x worse.
Writing this, anyone who has looked at previous stuff knows I’m a pretty bit crypto skeptic.
But I actually think Coinbase may survive.
Reason is at nearly 100 million users, they are the largest fintech app in history to come from the US.
The market cap at 14 billion would make it a pretty easy buy for Chase, Goldman, Microsoft or hell, Elon Musk.
Which if they get more into payments, forex or stocks, Coinbase could live way passed crypto, where Bitcoin was just the bait to get people there for other businesses.
Why it’s the only crypto anything I have any stock in and even though it’s crashing, I’m holding onto it.
Weird quote to say, but it’s basically “too big to fail”.
If they do crash though, that’s pretty much it for Bitcoin/crypto for a long time.
I don’t think they’d recover, the price drops 90%+ and it’s probably cause a micro depression, where younger people who hold money in crypto, comparable almost to the dust bowl for farmers in the depression.
Anyway, while I’m pretty confident Bitcoin/crypto fails long term, my guess is it surges back up eventually from here and Coinbase either gets acquired or spins off passed crypto.
