tl;dr
Ripple's CTO David Schwartz warns about the risks of keeping cryptocurrency on exchanges like Coinbase, emphasizing that if an exchange goes bankrupt, the crypto could be lost. He explains that FDIC insurance only protects cash in the event of a bank failure, not the exchange itself. While using FDI...
Ripple's CTO David Schwartz advises caution on storing crypto on exchanges like Coinbase due to the risk of loss if the exchange goes belly-up. FDIC insurance only protects cash in the bank, not the exchange itself, leaving crypto vulnerable in the event of exchange failure. Schwartz acknowledges the potential safety of using FDIC-insured banks to hold users' USD separately but emphasizes the need for meticulous record-keeping by Coinbase.
The discussion underscores the complexities of keeping crypto safe, highlighting the convenience of platforms like Coinbase alongside the associated risks. Ripple's CTO David Schwartz warns about the risks of keeping cryptocurrency on exchanges like Coinbase, emphasizing that if an exchange goes bankrupt, the crypto could be lost. He explains that FDIC insurance only protects cash in the event of a bank failure, not the exchange itself. While using FDIC-insured banks to hold users' cash separately could theoretically safeguard it, Schwartz stresses the importance of Coinbase maintaining accurate records to ensure fair distribution if a bank fails.
A big name in crypto, Ripple's CTO David Schwartz, chimed in on the whole "where to keep your crypto" debate. While he did not outright diss platforms like Coinbase, he did remind everyone that if an exchange goes belly-up, your crypto might be going with it. Advertisement This all started with someone asking about FDIC insurance for their USD on Coinbase. Schwartz explained that FDIC only protects your cash if the bank fails, not the exchange itself. Basically, if Coinbase goes bust and the bank does not have enough to cover everyone, you are out of luck.
Things got a bit more interesting when someone mentioned the possibility of Coinbase using FDIC-insured banks to hold users' USD separately. In theory, this could keep your cash safe even if Coinbase itself hits a rough patch. Schwartz agreed it could work but stressed that Coinbase would need to keep good records to make sure everyone gets their fair share if a bank does fail. The whole thing highlights that keeping your crypto safe can be tricky. Platforms like Coinbase are convenient, but there are still risks involved. So, before you park all your coins on an exchange, it might be wise to do a little research and understand what could happen if things go south.
More about MicroStrategy Incorporated
Stock Market Analysis: MicroStrategy Incorporated
MicroStrategy Incorporated provides global business analysis software and services. The company is headquartered in Tysons Corner, Virginia.
Sector: Technology
Industry: Services-Prepackaged Software
Market Cap: 24.77 billion
Dividend Yield: None
Beta: None
Price Change (52 Weeks): -10.6%
Price/Earnings Ratio: 32.62
Price/Sales Ratio: -0.174
Shares Outstanding: 489,592,000
Revenue: $1,959.82 million
Return on Assets: -0.775
Return on Equity: -0.055
More about Coinbase Global Inc
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Company: Coinbase Global Inc
Description: Coinbase Global, Inc. provides financial infrastructure and technology for the crypto economy. The company is headquartered in Wilmington, Delaware.
Sector: FINANCE
Industry: FINANCE SERVICES
Market Cap: 53,538,951,000
Current Price: $42.75
Dividend Yield: None
Price/Earnings Ratio: 5.1
Return on Equity: 15.83%
Beta: 0.357
Revenue: 3,777,835,000
EPS: $263.42
Net Income: 3.27
P/E Ratio: 1.156
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More about Marathon Digital Holdings Inc
Marathon Digital Holdings Inc
Marathon Digital Holdings, Inc. is a cryptocurrency mining digital asset technology company with a focus on the blockchain ecosystem and digital asset generation in the United States. The company is headquartered in Las Vegas, Nevada.
Sector: Real Estate & Construction
Industry: Patent Owners & Lessors
Market Cap: 5872072000
Current Price: 12.98
Dividend Yield: None
EPS: 1.6
P/E Ratio: 2.402
ROE: 0.956
Revenue: 501574000
Debt-to-Equity Ratio: 23.31
Current Ratio: 0.764
Quick Ratio: 2.231
More about NVIDIA Corporation
NVIDIA Corporation
Nvidia Corporation is an American multinational technology company incorporated in Delaware and based in Santa Clara, California. It designs graphics processing units (GPUs) for the gaming and professional markets, as well as system on a chip units (SoCs) for the mobile computing and automotive market.
Industry: MANUFACTURING, SEMICONDUCTORS & RELATED DEVICES
Market Cap: 317.99 Billion
PE Ratio: 75.6
EPS: 0.016
ROI: 1.71
ROE: 3.234
Beta: 0.534
Revenue: 79.77 Billion
Stock Price: 121.52
Dividend Yield: 6.5%
Net Income: 2.621 Billion