If Coinbase Had Invested In BTC In 2013, It Could Have Made Profits Worth $2B

The biggest US digital assets exchange Coinbase, could have collected much more money simply by holding BTC since 2013. Floating data over the internet suggests the current $800 million worth of profit made by Coinbase in its first quarter could not match the profit gain if the exchange initially invested its seed money in Bitcoin.

Coinbase lose out to holders from 2013

The first quarter of 2021 has managed to outperform the entire year of 2020 for Coinbase. The jubilant news arrives just a few days before the company set for initial public offering.

The figures released by the company became an immediate hit as participants from the market pitch in their thoughts on the influence of the Coinbase IPO launch.

In the middle of all the buzz and peak valuations, it seems that to outdone itself, Coinbase only needed to invest in Bitcoin. Precisely, if the company initially bought Bitcoin from its seed capital in 2013, the current valuation of the asset would have been $2billion. In contrast, the expected profit made by Coinbase throughout its lifespan approximated to be close to $780 million to $1.3billion.

Vijay Boyapti stated profit of $800 million made from a revenue close to $1.8 billion is good. However, how much Coinbase could have worth more if the profit they gained in Bitcoin compare to the US dollar.

According to Cointelegraph, BTC CAGR is at 200% and compared to the US dollar from 2013 to, 2021 Bitcoin is up by 43000%.

Coinbase usually held a few amounts of Bitcoins

The developer continued stating on a much controversial topic of Coinbase. Indeed with all its glory, Coinbase has consistently sustained a few amounts of Bitcoins. The latest filing by the exchange to US regulators suggests that Coinbase currently holds merely 4,486 Bitcoin. In contrast to this Boyapti, states recent arrival MicroStrategy maintains 91,000 Bitcoin even though it is not an exchange.

Boyapti concurs it feels like, Coinbase does not even trust the industry it is a part of, even though Coinbase is one of the vital players in the crypto market. However, not everyone sees eye to eye with this thinking. Creator of ShapeShift Erik Voorhees says in terms of influence on the digital asset phenomenon, Coinbase is unrivalled by MicroStrategy.

The founder carried on by saying he does not hold MicroStrategy in higher regards compare to Coinbase. According to him, Coinbase worked hard for eight years to establish a successful company that serves close to 50 million around the world. For MicroStrategy, the founder said it learnt about Bitcoin in 2020 and purchased it from Coinbase.

From Wednesday’s reading of the charts, a spike is noted in trade outflows indicating the long-term holding and interest in Bitcoin is increasing rapidly.

Ki-Young explains, at the moment, we are not in a high market cycle. He highlighted dissimilarities between the convectional Bitcoin cycle high and the recent climate. According to Young, once the market will be at its highest, everyone will sell Bitcoin.