Latest / Earn Your Leisure / Cliff Notes: Is Coinbase a Good Investment Opportunity Amidst the Rising Crypto Market?

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Cliff Notes: Is Coinbase a Good Investment Opportunity Amidst the Rising Crypto Market? · Earn Your Leisure

• 0:00
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 0:03
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 0:07
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 0:11
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 0:15
  Speaker 1: some of the heinous migrant criminals caught because of President
• 0:19
  Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
• 0:23
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 0:28
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 0:31
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 0:35
  Speaker 1: are here illegally, your next you will be fined nearly
• 0:39
  Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
• 0:43
  Speaker 1: never return. But if you register using our CBP home
• 0:46
  Speaker 1: app and leave now, you could be allowed to return legally.
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  Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
• 0:55
  Speaker 1: border and families will be protected.
• 0:57
  Speaker 2: Sponsored by the United States Department of Homeland Security.
• 1:00
  Speaker 3: So the S and P five hundred rolls five point
• 1:02
  Speaker 3: nine percent past week. That is the best week since
• 1:06
  Speaker 3: November twenty twenty two. So what do you think that?
• 1:09
  Speaker 3: What do you think called the SMP to rise and
• 1:12
  Speaker 3: is this a sign going forward for the rest of
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  Speaker 3: the year into twenty twenty four.
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  Speaker 2: Yeah.
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  Speaker 4: The number one thing that causes to rise is that
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  Speaker 4: interest rates are rates are going to be passed, So
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  Speaker 4: that sent the market into a frenzy. Also too, if
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  Speaker 4: we're going to be very honest, mutual funds hedge funds
• 1:30
  Speaker 4: need to bring on clients that they're wrapping up. You
• 1:32
  Speaker 4: can't have the market and a tail spin to the downside.
• 1:35
  Speaker 4: So there's a couple of things that are playing a
• 1:39
  Speaker 4: couple of key factors. The economy overall is still weak,
• 1:42
  Speaker 4: even though no one wants to say it, but because
• 1:44
  Speaker 4: they are guessing the interest rates are going to be hyped,
• 1:48
  Speaker 4: which allows for growth and a lot of these sectors
• 1:51
  Speaker 4: like you know Square one up twenty percent. That was
• 1:53
  Speaker 4: a bunch of companies that went on fifteen to twenty
• 1:54
  Speaker 4: percent on Friday of last week. This Monday has been
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  Speaker 4: great thus far. The number one reason, and we talked
• 2:01
  Speaker 4: about it in Market Monday Chicago. The indicator that matters
• 2:04
  Speaker 4: most is the yield curve and then interest rates. If
• 2:07
  Speaker 4: interest rates are not going any higher, it allows for
• 2:09
  Speaker 4: growth in the stock market and businesses worldwide.
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  Speaker 2: So that's the reason why.
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  Speaker 5: Yeah, and it's we started last week when with the
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  Speaker 5: word unfortunate, bad news for jobs means good news for stocks.
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  Speaker 5: And so when we're talking about bad news, they said
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  Speaker 5: that only one hundred and fifty thousand jobs were added
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  Speaker 5: to the economy, which is an indicator that the economy
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  Speaker 5: is slowing down. Right, the economy slows down, then the
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  Speaker 5: Fed says, all right, it's slowed down to a point
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  Speaker 5: we don't have to raise rates.
• 2:38
  Speaker 2: When rates don't get raised, we see what happens to
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  Speaker 2: the stock market, right, And so.
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  Speaker 5: They paused it for November, and now there's a probability,
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  Speaker 5: I think it's at ninety five percent that they will
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  Speaker 5: be frozen again for December.
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  Speaker 2: And so if you look at two months of freezing rates,
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  Speaker 2: that's good for the stock market. Right.
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  Speaker 5: In addition, we talked from a historical standpoint about the
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  Speaker 5: s and what happens to it in November is the
• 3:02
  Speaker 5: best month to trade. Yes, the timing couldn't be even better, right,
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  Speaker 5: And so you take a couple of these factors in
• 3:09
  Speaker 5: addition to the unemployment rate again another job indicator that
• 3:13
  Speaker 5: rose to three point nine percent, and so more people
• 3:15
  Speaker 5: are unemployed, better for the economy, better for stocks because
• 3:20
  Speaker 5: money has slowed down. And then Ian, you talked about
• 3:23
  Speaker 5: the treasury rate, and so this is interesting. The ten
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  Speaker 5: year treasury rate. It ended at four point five percent,
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  Speaker 5: which was almost three points down from four point eight
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  Speaker 5: percent a week ago.
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  Speaker 2: It was the steepest drop since March.
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  Speaker 5: And so you take all these things into account, you
• 3:40
  Speaker 5: talk about wages slowing down, all these things that sound
• 3:43
  Speaker 5: like terrible for the average person actually end up being
• 3:47
  Speaker 5: good for the stock market.
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  Speaker 4: Yeah, in September, we already know it's the worst month.
• 3:51
  Speaker 4: You're going to drop normally one percent. That's a great
• 3:53
  Speaker 4: time to buy. A lot of tax rebalancing that's happening
• 3:57
  Speaker 4: in October. Meet your funds are deploying for the fourth
• 4:01
  Speaker 4: quarter usually in October November. So it's a bunch of
• 4:03
  Speaker 4: factors that kind of played in. But that's why I
• 4:05
  Speaker 4: always say like the market is rigged to permanently stay
• 4:08
  Speaker 4: up as much doom and gloom as there is. The
• 4:11
  Speaker 4: indexes are going to be great. People asking me yesterday
• 4:13
  Speaker 4: and this morning, it's two techtoo. Inex to the way
• 4:15
  Speaker 4: to go is vo ups, VTI up is the S
• 4:18
  Speaker 4: and p up. Yes, yes, hole for the long term
• 4:23
  Speaker 4: and you'll be good.
• 4:24
  Speaker 2: Yeah.
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  Speaker 5: Higher heels means it's going to be more expensive for
• 4:27
  Speaker 5: not only you, but for companies to borrow money. So
• 4:30
  Speaker 5: those numbers come down. You'll see more people investing in
• 4:33
  Speaker 5: companies and they're going to have more profits because of that.
• 4:36
  Speaker 5: So it's just an inverse relationship. And again it feels
• 4:39
  Speaker 5: like to the average person is unfortunate, and it is,
• 4:41
  Speaker 5: but this is just how the economy works. And when
• 4:43
  Speaker 5: a very interesting time too, because if you don't put
• 4:45
  Speaker 5: the capital and deploy the capital.
• 4:47
  Speaker 4: Some way somewhere, inflation is literally gonna set it on fire.
• 4:51
  Speaker 4: So you can't sit on cash like you could maybe
• 4:53
  Speaker 4: four or five years ago and be like, no, I'm fine.
• 4:56
  Speaker 4: Like if you're saving, you're actually losing money. So now
• 4:58
  Speaker 4: you have to deploy the CA to real estate, to
• 5:02
  Speaker 4: angel to VC or too stocks or risk losing six
• 5:06
  Speaker 4: or seven percent on the capital that you have. And
• 5:08
  Speaker 4: if you have a lot of money sitting one hundred grand,
• 5:10
  Speaker 4: two hundred grand, man, it's burning a hole in your
• 5:12
  Speaker 4: pocket in your portfolio at the same time at the
• 5:16
  Speaker 4: same damn tone.
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  Speaker 3: Yep, So let's let's talk about crypto and stocks. Uh
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  Speaker 3: yes reported its seventh straight quarter of losses, But it
• 5:29
  Speaker 3: does seem that crypto is on the uptick. Are XRP
• 5:35
  Speaker 3: Mike Jones report posted XRP post today Mike Jones? Yeah,
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  Speaker 3: is Mike Jones helling? XRP is sharply on an uptick today?
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  Speaker 3: So at what point do you see a good buying
• 5:51
  Speaker 3: opportunity for coinbase? If possible?
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  Speaker 4: Yeah, it's currently at eighty five. I like it at
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  Speaker 4: seventy two. To me, Coinbase is a lagging indicator for
• 6:02
  Speaker 4: how crypto is doing. So of course Bitcoin XRP some
• 6:06
  Speaker 4: cases ethereum, I would want to look there first. But
• 6:10
  Speaker 4: Coinbase is going to be a lagger because they have
• 6:13
  Speaker 4: a lot of regulation issues. But if they go on
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  Speaker 4: a tear, it's going to be a great sign that
• 6:20
  Speaker 4: crypto is going to do well.
• 6:21
  Speaker 2: But I like it a like around seventy two dollars.
• 6:24
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• 8:18
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 8:21
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 8:25
  Speaker 1: accused of murdering a Texas. Man of Venezuelan charged with
• 8:30
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 8:34
  Speaker 1: some of the heinous migrant criminals caught because of President
• 8:37
  Speaker 1: Donald J. Trump's leadership. I'm Christy Noman, the United States
• 8:41
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 8:46
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 8:49
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 8:53
  Speaker 1: are here illegally, your next you will be fined nearly
• 8:57
  Speaker 1: one thousand dollars a day, imprisoned, and to poor. You
• 9:00
  Speaker 1: will never return. But if you register using our CBP
• 9:04
  Speaker 1: home app, and leave now. You could be allowed to
• 9:07
  Speaker 1: return legally, do what's right. Leave now. Under President Trump
• 9:12
  Speaker 1: America's laws, border and families will be protected.
• 9:16
  Speaker 2: Sponsored by the United States Department of Homeland Security.
• 9:18
  Speaker 5: The context of it, from year to day, it's up
• 9:20
  Speaker 5: one hundred and twenty eight percent the stop, yes, right,
• 9:24
  Speaker 5: So it's one of these things when we look at
• 9:26
  Speaker 5: it from we scale out a little bit, it actually
• 9:29
  Speaker 5: is up. But they've had a negative quarter for the
• 9:33
  Speaker 5: seventh time in a row, and there's a lot to
• 9:35
  Speaker 5: do with that. And some of the reasons is that
• 9:38
  Speaker 5: the training volume is down.
• 9:40
  Speaker 2: Right.
• 9:40
  Speaker 5: So if we look at when bitcoin actually start to
• 9:43
  Speaker 5: peak around late October or maybe late September into October,
• 9:49
  Speaker 5: what happened around that time the SEC decided that, yeah, hey,
• 9:53
  Speaker 5: we might be able to investigate and hate it.
• 9:56
  Speaker 2: We might be able to make an ETF out of cryptocurrency.
• 10:00
  Speaker 5: So you start to see the numbers start despite but
• 10:02
  Speaker 5: that happens in October, which is not this.
• 10:04
  Speaker 2: Quote the third quarter that just reported.
• 10:05
  Speaker 5: Yeah, so you have to start looking at things from
• 10:08
  Speaker 5: a whole scale standpoint, because yeah, the next quarter you
• 10:11
  Speaker 5: might see that. And here's the translation. Right, if the
• 10:14
  Speaker 5: trading volume is down. That means the revenue that they
• 10:17
  Speaker 5: get from transactions is down. If that happens quarter after
• 10:21
  Speaker 5: quartera they're not making money. Even though we're watching the
• 10:23
  Speaker 5: stock climb because people are actually in the space and
• 10:28
  Speaker 5: we've seen the uptick, there's the negative correlation is going
• 10:31
  Speaker 5: to be there until we start seeing people trade more.
• 10:33
  Speaker 5: This isn't like twenty seventeen where people on the platform and.
• 10:37
  Speaker 2: It was a craze.
• 10:38
  Speaker 5: We're starting to see people slowly come in sec Like
• 10:40
  Speaker 5: I said, that report helped it, but it's interesting. So
• 10:44
  Speaker 5: when you're looking at the stop price and you're looking
• 10:46
  Speaker 5: at the earnings reports, you got to have a totality
• 10:50
  Speaker 5: look at it.
• 10:51
  Speaker 4: Brokerages are never a good business to invest in long
• 10:53
  Speaker 4: term because you really can't control the products. You have
• 10:55
  Speaker 4: too much negative exposure. And also there's usually a bunch
• 10:59
  Speaker 4: of companies that merge together. Like for those of you
• 11:01
  Speaker 4: who are using td ameritrade, or we're using td ameritrade
• 11:04
  Speaker 4: now you need to switch over to swap to be
• 11:06
  Speaker 4: able to access I think or swim. So I don't
• 11:09
  Speaker 4: like the broker's business, but for me, coinbase is a
• 11:11
  Speaker 4: lack of an indicator on crypto overall, yes, it has
• 11:16
  Speaker 4: had the rise over the last year, but it's a
• 11:18
  Speaker 4: far cry from that three thirty seven three quarter the
• 11:20
  Speaker 4: area was at at the craze, And I told you guys,
• 11:24
  Speaker 4: if the ETF got approved bitcoin to go to thirty
• 11:28
  Speaker 4: four eighty five, we've reached past that point. If I
• 11:32
  Speaker 4: made you money, please put yes in chat.
• 11:33
  Speaker 2: Yeah.
• 11:34
  Speaker 4: But I think we're going to see a rise in
• 11:35
  Speaker 4: crypto over the next year year and a half for sure,
• 11:39
  Speaker 4: especially as the economy is getting worse.
• 11:41
  Speaker 5: And this is the closest quarter that they've come to
• 11:43
  Speaker 5: actually having positive revenue. I think they were like two
• 11:46
  Speaker 5: million maybe three million off, and so the signs of
• 11:49
  Speaker 5: point int that next quarter. Obviously, with what we just
• 11:52
  Speaker 5: talked about, with the approval of the ETF pending, uh,
• 11:55
  Speaker 5: they could be a change to the next quarter.
• 11:57
  Speaker 2: Yeah, yeah, so far.
• 11:59
  Speaker 3: Do you see any stock opportunities related to crypto? Obviously
• 12:04
  Speaker 3: coin Base is a stock that you know is like,
• 12:09
  Speaker 3: you know, relying on the success of cryptocurrency, but like
• 12:12
  Speaker 3: if somebody wants to invest in the stock market and
• 12:16
  Speaker 3: tie it to some level of crypto, you know, boom.
• 12:21
  Speaker 3: Do you have any stocks that you think could be beneficial.
• 12:25
  Speaker 4: Only ones I'm leaning on right now directly are the cryptocurrency.
• 12:29
  Speaker 4: So I'm bigcoin x RP, I'm a fan of.
• 12:33
  Speaker 3: What about the big What about a bigcoin ETF or
• 12:37
  Speaker 3: like an cryptocurrency ETF.
• 12:41
  Speaker 4: No, here's the reason why they're they're It's like if
• 12:44
  Speaker 4: I try to start a football league, which Vince McMahon
• 12:47
  Speaker 4: has done three times. I think my biggest competitor is
• 12:50
  Speaker 4: the goliath that cannot be beaten with the sling shot
• 12:52
  Speaker 4: in the rock. So when Black Rock finally announces their
• 12:56
  Speaker 4: et F and all the institutional money starts to flow
• 12:59
  Speaker 4: through them, it's gonna be hard for the other players,
• 13:02
  Speaker 4: even like you can say I like micro strategy and
• 13:06
  Speaker 4: I like Michael Saylor, but I don't think he can
• 13:10
  Speaker 4: defeat Black Croc.
• 13:11
  Speaker 2: Like the game is not fair.
• 13:13
  Speaker 4: This is we gotta have some honest conversations twenty twenty three,
• 13:15
  Speaker 4: twenty twenty four. The game is not meant to be fair.
• 13:18
  Speaker 4: The purpose of capitalism is to get an edge that
• 13:20
  Speaker 4: no one else can be. We want to talk about
• 13:22
  Speaker 4: real generational wealth you can only have and next year
• 13:25
  Speaker 4: we gotta have a conversation about generational wealth being overrated.
• 13:28
  Speaker 4: But you can only build generational wealth. If a limited
• 13:32
  Speaker 4: number of people are able to do something that you're
• 13:34
  Speaker 4: not able to do, I don't want black rocking vandguard
• 13:37
  Speaker 4: as as a competitor, I said two years ago, I
• 13:40
  Speaker 4: think everybody should stop screaming about what they're playing is
• 13:42
  Speaker 4: because the banks are going to come in and.
• 13:44
  Speaker 2: Take it over. Here we are. It's too late.
• 13:47
  Speaker 4: XRP is about to get into the fold and may
• 13:49
  Speaker 4: be tough for ethereu here we are so stocks directly, no,
• 13:53
  Speaker 4: I would look at what companies in the top seven
• 13:57
  Speaker 4: are hiring. Matter may be a ancillary or tertiary play.
• 14:04
  Speaker 4: Apple will eventually do something big in a crypto space,
• 14:07
  Speaker 4: but as far as the ETFs, no, I wouldn't do it.
• 14:11
  Speaker 5: So Yeah, and just to add to that, right, you
• 14:13
  Speaker 5: said that the SEC might approved the bitcoin ETF. Well,
• 14:16
  Speaker 5: coin Budience is fighting the SEC right now. Right they're
• 14:20
  Speaker 5: still under under illegal fight for you know what. They
• 14:23
  Speaker 5: have the lawsuit in June about them being a legal
• 14:26
  Speaker 5: uh securities exchange platform and so you're battling that too,
• 14:30
  Speaker 5: on top of everything inside of the space and from
• 14:34
  Speaker 5: competitors who are trying to now create ETFs for the space.
• 14:37
  Speaker 4: Yeah, you don't want to fight a trend. It's a
• 14:40
  Speaker 4: lot easier to push a boulder downhill than it is
• 14:43
  Speaker 4: up