Explain to me how Coinbase is profitable while it is now valued at 12% of the total market cap of BTC?
Without the underlying asset increasing dramatically in value, how do the NYSE investors see ROI?
Profitability has nothing to do with market cap.
Coinbase is setting up a business that will cater to the mass 90% of public that will utilize
BTC without knowing they are using Bitcoin for daily exchanges - basically Coinbase is going to sell you bitcoin for a 1-2% fee, allow internal transfers to allow you to buy that coffee from the corner coffee shop at them paying 1% fees, and then resell the bitcoin.
That is what these guys are investing in, not the total market cap of BTC. I figure the investors are buying bitcoin as a % of their own net worth and using fiat to support and gain fiat by investing into Coinbase.
I guess that is why VC's see the potential and invested 75 million into the company. Thats a crazy amount.