COINBASE LISTING: a crypto moment

WESLEY DIPHOKO

JUST over a decade ago, digital assets were a theoretical concept, announced to the world through an anonymous white paper.

Today, a digital asset exchange is trading on the Nasdaq exchange with a market cap of $62 billion as of April 14 2021, excluding options and restricted stock units. Coinbase’s direct listing represents a watershed moment for the digital assets industry. Coinbase is the first major cryptocurrency startup to go public on a US stock market. It did so at a valuation that rivaled that of Airbnb and Facebook when they went public. It is the largest listing (IPO, SPAC, or otherwise) of any digital asset company in history, at valuations that reflect a direct competition with traditional exchanges. A valuation at this level indicates the full scale of global digital asset adoption by institutions and individuals.

Full-year 2020 revenues for Coinbase were $1.28 billion and net income was $322.3 million. In its preliminary Q1 2021 results, Coinbase projected 2021 revenues of $1.8bn and net income within $730 to $800m. These estimates represent a massive spike in growth of top- and bottom-line revenues that exceed their full-year returns for the prior full-year.

The listing of Coinbase is silencing the doubters who are still sceptical about the industry. Now investors who may be wary of directly buying risky digital currencies have the ability to own stock in a Securities and Exchange Commission-approved business that facilitates the transactions.

Coinbase CEO Brian Armstrong said: “I wanted there to be just a true market on day one that set the price, not something that was set behind closed doors.” The direct listing, which provides greater accessibility to retail investors, is also more “true to the [democratic] ethos of crypto”.

The financial world can also look at Coinbase’s healthy profits – something that most other highly valued tech startups lack – and ballooning adoption. Coinbase, which has 1700 employees and 5million registered users, reported an estimated $730m to $800m in net profit in the first three months of the year. It brought in $1.8bn in revenue during that period, a ninefold increase from a year earlier.

Coinbase’s listing appears to be another sign that cryptocurrencies – and the blockchain technology they’re built on – have gone mainstream.

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5 Things you can buy with bitcoin

MASABATA MKWANANZI masabata.mkwananzi@inl.co.za

OVER the past few years, Cryptocurrency has been slowly gaining traction and it’s no surprise that digital currency is taking the world by storm. And if you were to tell me that you could buy a car with Bitcoin I would not believe you, until the tech guru Elon Musk made a game changer move by announcing that you can now buy Telsa with Bitcoin.

Right after Musk announced the news, every person kept asking themselves, what can I buy with Bitcoin? Where can I use Bitcoin?

Well, the answer is: you can buy almost anything with Bitcoin, from sites such as BitPlaza and BitcoinTravel.

On BitPlaza you can buy items from an iPhone 12 Pro Max, gardening equipment, groceries, and everything in between.

Here are 5 things you can buy with Bitcoin:

Tesla

We are starting our list with the big one. A support page from Tesla’s websites explains how customers can pay for a Telsa using Bitcoin:

“First, you need what is called a ‘Bitcoin wallet’ – a device, platform, app, or software that supports Bitcoin transfers. Tesla will give you our Bitcoin wallet ‘address’ in both an alphanumeric code and QR code for you to enter into your Bitcoin wallet so it knows where to transfer the Bitcoin. It’s your responsibility to make sure that you send the Bitcoin to Tesla’s Bitcoin wallet accurately.”

Takealot

This is one of Mzansi’s largest e-commerce retailers. You can get almost anything you want from the site, including fashion, health and beauty products, gaming, and music electronics, making it the perfect place to spend your Bitcoin.

Cape Coffee Beans

Coffee lovers can order freshly roasted coffee beans from some of the best artisanal roasters. They offer a broad selection of coffee makers, coffee grinders, and accessories.

Airline Tickets

Travel lovers can find a number of travel sites where they can purchase flight tickets with Bitcoin such as BitcoinTravel. Some airlines have come to terms with Bitcoin as a method of payment like British Airways, Qatar Airways, and Ethiopian Airlines.

RC King

If you are a gadgets person then RC King is the right choice for you to use your Bitcoin. The store provides customers with exemplary service and treats them like royalty. The business is based in Johannesburg and is able to send packages to the far corners of the country.