I am keen to talk in this newsletter about non-obvious things that our subscribers will not have heard about, or considered through other sources. However, the IPO of Coinbase is worth a comment.
Firstly, because the company that Grandma, Grandad and Tesla use to buy crypto assets becoming a publicly listed company is significant.
Secondly, the valuation of Coinbase is larger than BP (formerly British Petroleum). Listening to Coinbase’s Chairman talk about the business being a vehicle for the digitisation of value, I laughed. Not because it doesn’t sound cool, but because the BBC journalist didn’t ask her what on earth the “digitisation of value” means.
In March, I thought the rise in bond yields and concern about inflation would result in tech stocks getting a kicking, and BTC and ETH would be considered in the same strain of asset class and also lose value. I was wrong. The demand for ETH especially continues to rise as the utility of the network increases and finds new customers and use cases, and QE shows no signs of easing.
Staking Ethereum with Launchnodes yields our customers 8%, paid in Ethereum. I do not believe the option that puts Ethereum at $25,000 at the end of April will ever be in the money. However I do believe that whilst we continue this QE powered joy ride, it could easily see $5,000 inside the next 36 months.
If it sometimes feels like 1999 and the dotcom boom all over again, that’s because it is. Just because there was a big price correction, it didn’t mean the Internet did not end up changing the fabric of how we live.
The same goes for ETH. DeFi powered by Ethereum is going to increase its functional capability and the liquidity in its core applications (Aave, Compound etc.) and find new applications I have never thought about, profoundly changing finance in its wake.
Some of you reading this might be post money already, those of you who are not but are staking Ethereum and running nodes, it feels good to be helping you to get there.
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