Or it was sponsoring a NASCAR race.
- If you remember that? - Yeah.
- With the dog? The dog on the front. - Yeah.
It's always been very light-hearted and fun.
And I think it's always going to be the "fun coin" of crypto.
So in that sense,
but there's no underlying technology,
so it's really hard to make some sort of investment case.
The only case you can really make is
people will like the fun coin of crypto more and more and more.
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Welcome to BitBoy Crypto! The largest crypto channel in all the Interwebs.
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Today, guys, we're bringing you another episode of Stonks Day.
Today, we're going to be discussing Dogecoin,
which isn't really a stock, but Justin does have some holdings in it,
and then also the Coinbase IPO.
Is it a good time to get in?
Or what is the best entry price?
Now, if you want to invest in the Coinbase stock,
of course, not financial advice, I'm not a financial advisor,
you can certainly visit bitboycrypto.com/deals,
scroll down to the Webull section,
and there, you can get access to two free stocks by signing up,
and, of course, I get two free ones as well for the referral.
Alright, guys, if you want to do that, make sure to visit the page.
Let's go ahead and jump into the interview.
Hey, everybody! Once again, today, Friday is Stonks Day.
You guys know. I'm joined with Justin from A Couple Cents on YouTube.
You guys make sure you're subscribing to his channel.
He's had some really great videos the last week on the Coinbase IPO.
I wanted to bring you on, talk about Coinbase IPO,
and what you thought about it and, you know, whether or not it's a good buy,
when people should be looking to get in,
and then also, first and foremost,
I want to talk about Dogecoin because you are a Dogecoin holder.
Tell us a little bit about your experience, Justin, with Dogecoin.
Yeah, I mean, so I'm a longtime very, very large Bitcoin owner,
Ethereum owner,
actually a little bit of-- quite a bit amount of BNB as well.
So those have been doing well.
And I've always been a very big crypto guy.
I mean, since 2013.
And Dogecoin has always been a bit of a funny one, you know.
It was on the cover of a-- or it was sponsoring a NASCAR race.
- If you remember that? - Yeah.
- With the dog? The dog on the front. - Yeah.
It's always been very light-hearted and fun.
And I think it's always going to be the "fun coin" in crypto.
So in that sense,
but there's no underlying technology,
so it's really hard to make some sort of investment case.
The only case you can really make is
people will like the fun coin of crypto more and more and more as crypto grows,
and, you know, with Elon Musk tweeting about it all the time,
I mean, you kind of rely on the retail investor kind of pumping it,
and then, you know, it crashes a lot harder than everything else.
So I just remember this time around, right?
Towards the beginning or the middle of the GameStop craze on the stock side of things,
folks, you know, as Robinhood stopped a lot of the trading on GameStop,
people started looking for other things to pump.
And so one of the things-- like, I got my start on TikTok.
One of the things that I saw was like Dogecoin.
I was like, "Oh, this is like the third or fourth time I've seen Dogecoin be pumped by Internet,"
and so I was like, okay, so I basically bought $1,000 worth in my account,
- my Robinhood account, if you can see here. - Yeah. Yeah, there it is.
And--
and it-- you know, it--
I just forgot about it because there's no real investment case,
- but it's fun. - Yeah.
So that's my experience with it.
It's hard for me to say like,
- "Go put like $100K into something like this," - Yeah.
because long term, like, you know what.
But I'm sure it's amazing for the traders on your channel.
Yeah, for sure.
I don't think a lot of the traders though were seriously looking at Dogecoin.
And I know before we went on here, we were talking a little bit about,
you know, what is a meme coin? You know?
Like a meme coin is just, you know.
It's a coin that's for a community. It's really all that means.
And they kind of circle around the meme.
But in reality,
like, there's not that much difference between a meme coin and Dogecoin
and something like Litecoin, you know?
- Like at the end of the day-- - Yeah. They're exactly the same, right?
- Yeah, like how many what? Like, $7K now? - Yeah.
About like-- not even-- like, I didn't even know it was here.
- But I could never have predicted that, right? - No.
And, like, it's--
That's why I've never been a Litecoin holder
because who's to say that--
there are hundreds of Bitcoin "copies", right?
Litecoin is just Bitcoin,
- but they added a zero to throughput, right? - Yeah.
- I mean-- - Well, it's just a fork of the code.
- It was just a fork the code. - Not a "hard fork". Not a "soft fork".
- Fork of the code. - Yes.
And the only thing that ever kind of made sense was that whole Bitcoin Cash split,
- which is now-- right? Kind of behind us. - Yeah. Yeah.
But in the moment, it was like, "Are they going to hijack Bitcoin?"
But other than that, Bitcoin is king.
And so, in the real world, right?
For thousands and thousands of years as humans,
there's always been gold.
And what's the reason why you would want to--
like, everybody wanted to trade gold
and not like sterling silver or, you know, any other-- copper, right?
Those trade more like commodities.
It only matters how much that stuff's being used in the real world.
There's only one gold.
So whether it's Litecoin or Dogecoin,
or anything,
I, as a corporate finance valuation analyst that likes business strategy,
there's really no strategy with Dogecoin other than trying to predict Elon's tweets maybe.
Yeah.
Exactly. I think that has a lot to do with it.
But, you know, also, you know, the original creator of Dogecoin, Jackson Palmer,
he's not even involved in it.
There's like no development on Dogecoin. Like--
It's not going to be anything in the future other than what it already is.
And I think when you look at a lot of the other cryptocurrencies that people invest in,
like, you're investing in the potential of what it can become,
not investing in it because of what it is right now.
And Dogecoin is a little bit different because it is just--
we're just investing in this because we think the price can go up.
You know, and the younger generation loves Dogecoin.
And I like that. I'm happy for all the people that made money with it.
But in terms of, you know, whether you should buy some now,
I mean, I think, you know, you would probably agree with me that
it just went up like in the last 24 hours 150%.
Not the best time to probably get in.
But long term, who knows how high it can go?
Yeah, who knows? But if you buy now,
- just ask yourself, "Why would it go up more?" - Yeah, right.
And no one in the world can tell you.
Unless you're Elon Musk, and you tweet about it
and pump it a little bit more,
no one can really tell you.
And then I saw a stat on Twitter that said like
there needs to be X amount of Dogecoin bought every single second
in order for it to hold these prices.
Like, yeah, that's true.
So, the higher it goes, the more like--
- the more that a bubble requires to, like, stay, whatever, so-- - Yeah.
Yeah, I mean, I would say there are more fundamental holds like Cardano or BNB,
or Ethereum or even, you know, something like that,
but, yeah, I mean, this one is more of a fun thing, and if you just want to own a little bit,
now is probably not the best time.
I generally-- even in the stock market, I just generally don't like buying on up days.
- Like, big up days. - Yeah, of course.
- Buy in the red. Sell in the green. - Yeah, exactly.
So whatever your gut feeling is,
do the opposite usually on the days that are like super up or super down.
Man, that, you hit it on the head right there.
Do the opposite of what you're feeling.
You know, like, you've got-- you have to be--
it's very counterintuitive to sell when it's doing well
and to buy when it's doing bad,
but that's how you make money in investing.
So let's talk about the Coinbase IPO.
I know you talked about it a lot on your channel.
Like I told the audience, if you guys want to go subscribe to A Couple Cents,
guys, make sure. The link will be down below.
But you talk a lot about the Coinbase IPO.
We talked about it for several weeks leading up.
Now, we had it. We had the launch.
What is your overall feeling on how the launch went first?
And then we'll get into, you know, what some good buying points could be.
Alright, so as we see here, Coinbase has been trading for two days now.
It closed at about $320 a share, low 300s,
and really popped to over $400. I think it hit like 410,
- 420-- that'd be funny-- - Yeah.
$420 a share.
But the reference price at which I did a lot of my analysis was $250 a share.
So, you know, it's leveled off.
Usually, what I like to say is if it's a really hot, buzzy IPO,
- don't buy in the first day. - Right.
And if it's popped from where people thought it should be valued,
then you should probably wait maybe a month or two or three, right?
So, I mean, just kind of-- I mean, I just want to show the stock price,
but basically--
what I had basically done was at $250 a share,
Coinbase could be worth a lot more.
And I released a video. It was like
basically, Coinbase could be a steal,
but in order for it to be a steal,
you have to believe that Bitcoin and crypto does really well.
- Right? - Yeah.
One does not do well without the other.
Well, actually, Bitcoin can do well without Coinbase.
Coinbase cannot do well without Bitcoin.
And so I basically said we have about $2 trillion market cap on crypto.
We have about a $2 trillion crypto market cap in whole with a 52% Bitcoin dominance right now.
And so, if we believe that crypto can surpass gold in market cap,
and gold has about a $10 trillion market cap,
let's just say that all of crypto is worth $15 trillion at some point,
so if this global crypto market cap,
if we believe that crypto will become $15 trillion,
and if that's the case,
I kind of did the analysis where
let's say they can have an average of a 2% take rate or something like that
on their assets on their platform,
and if you remember from our last discussion,
they have 11% of all crypto on their platform.
11%!
So if they can just maintain that, and crypto goes from 2 to 15,
- then it's probably a $1500 stock - Yeah.
because I also think that commissions are going to zero or close to zero over time, right?
They're somehow able to take 4.5% from newbies, right?
- Who don't know to go to pro.coinbase, - Right.
or they'd have to go to Binance or something.
That's going to go away as, like,
you know, you don't think that, like,
- Robinhood trading is going to shoot that down? - Yeah. More competition.
So, I think, like, if you do the math, right?
If crypto goes from 2 to 15,
you know, that's a 7, 8 times upside.
And if you buy Coinbase stock today at low $300s,
and then it goes to $1500,
- that's only like a 4.5 times upside. - Yeah.
So at that point, I would rather just buy Bitcoin,
or if you think Bitcoin dominance is going to go down,
then buy a basket.
I know Grayscale has a vehicle where it's like the large cap coins.
So I would rather invest in Bit-- coin, like,
- I guess, a diversified group of crypto - Yeah.
over Coinbase
unless you think that Coinbase somehow drives these insane amounts of value
through prime brokerage to the institutions which they're big in,
or lending,
or-- I don't know.
Maybe we're all using Coinbase credit card instead of Visa someday.
If you believe in that,
then you could hold it with optionality because Coinbase will do well as crypto does well as well.
So then you're going to have to figure out how to-- the next lily pads to build and jump on.
Well, I'm probably going to be reaching out to Coinbase and asking them
if they will just sell me all their user data so I can go trade
and know how to make the best trades based on the poor Coinbase peasants.
That's revenue if they sell you the data.
Coinbase would get murdered if they did that.
You know, in crypto.
- That stuff won't fly in crypto. - Yeah.
I think something like that would be very counterproductive,
but I do think, you know, we talked about before,
it's not a FAANG stock, you know, because it doesn't fit that same category
because it's not like a software company,
but, you know, that could be something they kind of move more towards using analytics,
you know, something like that.
Maybe they have like a studio similar to Glassnode in the future
where they've got analytics for sale or whatever.
So I'm very interested.
This is something I said about Coinbase is
that I'm very interested to see what their company will look like.
After you told me that--
because I didn't know that was like Amazon's main moneymaker,
with the cloud services and stuff like that.
After you told me that, I sat there thinking like,
"Yeah, but we don't know what Coinbase is going to look like in future."
You know, it could move to more-- if that's what all these major companies are doing,
then it would stand to reason that they're going to do it as well.
Well, I know that Coinbase is for purchase on Webull,
the Coinbase stock,
if anybody wants to get access to that,
go to be bitboycrypto.com/deals,
go to the Webull page,
and you guys can purchase it there.
I'm going to be purchasing some today.
I'm actually-- I think around $300, $320, somewhere in that range,
I'm comfortable buying it because I just want to hold some.
And I think-- I didn't want to get it the first day,
but now things have calmed down a little bit.
It's kind of evening out.
The one thing I am going to be really interested in is going to be
whether or not Bitcoin price just has a direct effect on the Coinbase price.
Like, when we start to go to a bear market,
are we going to see like incredible opportunities on the stock side for Coinbase
with the public company because of the prices dipping?
What is--?
Just lastly, what is your view on, No. 1, just buying it right now where it's at?
Do you think there's a ton of downside?
And No. 2, do you think that a bear market is going to create
a similar opportunity for the stock that we see in Bitcoin?
Yeah, so if you look at their data and their charts,
their monthly trading volume gets cut in a third when Bitcoin is not in a bull market.
Yeah.
So their revenues are going to conceptually get cut into a third.
So what I would say is
I would probably guess this company gets a lot cheaper when we enter a crypto winter.
And it's not necessarily that if Bitcoin's going down.
It's when people are not looking at Bitcoin, which will happen again, right?
- We've gone through three of these cycles. - Yeah.
I mean, more than that, some people.
But the question is do you think that it will go down more than Bitcoin?
Well, and my bias is to say yes.
So if Bitcoin goes to-- it crashes-- Let's say we hit $100,000, $150,000 in Bitcoin,
and that's the peak for this cycle,
and we crashed 40%,
then, you know,
Coinbase probably crashes 50% after they report earnings
where they're not making as much money,
but, I mean, it's not--
I don't think it's unreasonable.
The reason why I-- the best reason to buy Coinbase is you have money in a 401(k)
or retirement account or IRA
where you can't buy--
like, you can't buy crypto,
- then Coinbase is probably a fine enough way to get exposed to the asset class. - Yeah.
- That's why I think Cathie Wood is buying instead of-- - That's a good point.
but also we have some issues with GBTC and stuff like that.
But I also think that you should compare it against GBTC if you're into one of them,
but, you know, I don't think you're wrong.
And I think there's optionality.
Just be prepared for you to not--
I think it just has a worse risk/reward profile
- than Bitcoin itself. - Yeah.
So as long as you're okay with that,
as long as you're okay with like 5X upside,
if Bitcoin goes like 7X upside,
but you have the optionality of Brian Armstrong, the CEO,
then creating some cool value,
you know, I think that you're giving up some upside for optionality
if this company like develops some really cool shit.
Yeah.
I think that--
I just have to believe somewhere down the line that Brian and I are cousins.
I have to believe it on some level.
I don't know how we're not.
We have to be.
I mean, we have the same last name,
we're both into crypto,
we both used Coinbase the first year it was around,
and both of our first names start with B.
I mean, it has to be, obviously, relation there.
But, yeah, so I think, like for me, personally,
every single thing I invest in isn't from a pure, like, it's a great investment decision.
Like, I like to support stuff.
And so, for me, like, owning some Coinbase stock,
I think it'd just be, like, it's a way for me to support them and be cool.
I always have loved Coinbase.
I've never, you know.
I don't have a lot of problems with them like a lot of people do, so.
And I just, like I said, in the back of my mind, I've got to think somewhere at a family reunion,
I'm going to see Brian and where I'm going to be like, "Dang, I knew it."
- This is why I support-- you know. - That's awesome.
- I'm rooting for that. - Yeah, rooting for it.
Alright, Justin, well, thanks for coming on the show today.
As always, it's been wonderful.
We got a good video for you guys next week.
We're going to be talking about top crypto stocks.
So excited to do that as well.
Justin, anything you want to leave us with today?
No, definitely this was fun.
And if you want to know more about Coinbase,
I did three videos in a row.
I think I'm going to leave that one there on my channel at A Couple Cents on YouTube.
And other than that, see you guys next week.
Yeah, that's it.
Alright, guys, drop some comments down below. Let us know
what are your thoughts on Dogecoin?
And are you going to buy some Coinbase stock?
Or maybe you already have.
Drop those down below.
That's all I got.
Be blessed.
BitBoy out.