Is Coinbase Stock Undervalued?
Rakesh Lahoti Rakesh Lahoti
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 Published On Jun 28, 2021

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Timestamps:
0:00 - Intro
1:32 - How Coinbase is like a Bank
3:17 - How Coinbase is like the NYSE
3:33 - Coinbase's Secret Sauce - Coinbase Ventures
5:18 - Web 2.0
7:46 - Web 3.0

Coinbase holds about a million bitcoin in cold storage, which means that as of this recording, they have about 32 billion dollars worth of bitcoin. But that’s just the tip of the iceberg.

The main idea here is that our financial systems are built on top of institutions like banks, stock exchanges, & venture capital firms. Without these 3 institutions, the average middle-class American would never be able to build wealth or move up socioeconomically.

But all 3 of these institutions are flawed in one way or another. My proposition to you is Coinbase has the potential to be all 3 of these institutions while also getting rid of their flaws.

Coinbase Ventures is the secret sauce that will 10x the value of Coinbase Stock within the next 5 to 10 years.

They were early investors in OpenSea - a marketplace that lets you mint, buy, or sell NFTs. Here are some of the things you can do on OpenSea.

You can buy or sell censorship-resistant websites so nobody can take them down. You can also use these domain names to turn crypto addresses into human-readable addresses.

Before the invention of blockchains, digital art and music were worthless because they could be copied, but now you can undeniably prove ownership of those files. OpenSea provides a marketplace for these files to be bought and sold.

They even have a marketplace for trading cards, collectibles, and even selling in-game assets like parcels of land in The Sandbox or special names in Decentraland. These are brand new markets that are still in their infancy but as the onramp to crypto becomes easier and the infrastructure becomes more robust, all of these marketplaces are going to evolve and grow… and the early adopters will be the ones that will ride this wave to the future.

Have you ever heard of CryptoKitties? How about NBA Top Shot? These were created by Dapper Labs, one of the most famous NFT companies in the world … and you guessed it, Coinbase Ventures has its hands in that pot too.

NBA Top Shot brings your childhood hobby of collecting NBA Cards into the future. Instead of buying a physical booster pack, you buy a digital one, and inside that pack are a bunch of NFT Gifs which they call “moments.” Since they’re minted as NFTs you can buy and sell them like you would ordinary basketball cards. NBA Top Shot even brings the marketplace to you so you don’t have to leave the site to trade your moments.

Coinbase also invested in The Graph, which is a search engine for Ethereum based apps, like what Google does for the internet.

Coinbase Ventures is investing in over 70 different startups which you should go check out because it’s going to create an entirely new class of companies and billionaires.

We’re in the middle of a very fundamental transformation of our economy and how we interact with the web. We used to be in what I call web 2.0 which was largely driven by three core layers of innovation: mobile, social, and cloud. But all of that is changing.

A web 3.0 app has 2 parts. You will need a crypto wallet like Metamask or coinbase wallet and you’ll need an app to use it with.

The way it works is, your personal information, tokens, NFTs, and other data you want is stored in your crypto wallet. Your wallet has a private and public key.

If you’re signing up for youtube, you’ll need to make a username and password right? But in a web3 version of youtube, your wallet’s public key would serve as your username and your private key would work as your password. This is why you have to protect your private key at all costs.

The benefit of setting it up like this is that no single company can harvest all of your data. With a crypto wallet, you own your data and you control how much of that data the company sees. It’s like when you download an app on your phone and they ask for access to your camera, microphone, and all these other permissions. Except now if you decide to leave that app for another app, you get to take all of your data with you. They don’t get to keep it like they would in a web 2 app.

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