Goldman Sachs Group lends money to Coinbase backed by bitcoins

[Hold-n-play]

So my guess that a bunch of financial guru from coinbase made a good homework by predicting btc at 60k sometimes soon... I hope   Thanks for your post!

i personally didnt get a loan. i used some spare cash i had and bought in while prices were low.
(i already have a hoard so dont 'need' more btc)
but the low price was too tempting to ignore the opportunity)

bitcoins "value window" of cost to acquire bitcoin on the planet for 2021-2022 via exchanges or blackmarket or mining is $25k-$70k
the $25k is the cheapest mining cost of efficiency on the entire planet. which only a select few can attain.(germany and japan can mine for $69k (they are not mining right now they are instead prefering to buy))
meaning that no one anywhere wants to sell below $25k, but alot of people are happy to buy becasue its cheaper than their regions mining cost
knowing bitcoin can reach upto $70k before the passions of buyers die out (even germans and japanese would still buy at $70k because they cannot mine it for less than $69k/coin)

thus this window of value of $45k spread. shows that the price is in the cheap 8th of value
25 30 35 40 45 50 55 60 65 70
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    ^

(note Q2 2022 is more like $27k-$90k. but im using a historic reference of past 18 months for risk adverse reasons)

Thanks again - very thoughtful! just out of curiosity  - how did you get that window of value?

[franky1]

Thanks again - very thoughtful! just out of curiosity  - how did you get that window of value?

it has absolutely nothing to do with market prices or exchange rates. or historic price data where naive people pretending to be technical analysers just draw trend lines..
(true technical analysis has nothing to do with market price trend analysis)
..
it has everything to do with looking at things like the UTXO realisation rate of a certain time period. and also the mining costs of different regions on the planet.

which is where the value window comes..
taking these measures and then and only then looking at where the price sits within that window shows where good or bad value is of the price. whether bitcoin is cheap or expensive.

i have been doing this many years and the price always fits within the window(of the particular period of time it applies to) because economic, social and general value sentiment causes people to either be in a high buying pressure/ low selling pressure when its cheap and high selling pressure /low buying pressure when its expensive. where at both ends it reaches its bottom and peak when it reaches certain amounts..

.
its why bitcoins 'bottom' is not zero. , for bitcoin to ever 'absolute zero' bitcoin would need to have an unfixable bug where by all asics just give up. something not really ever going to happen from current prospective of reviewing the code and the 13 years of bitcoin functioning.

the bottom could decrease but that would require alot of hashpower switching off
(like 18's window that was $5.6k-$20k but dropped to $3.8k)
(november 2018 hashrate went from 60exa to 38exa)

and yes the hashrate dropped first.. and the price dropped a fortnight after. so its more about watching the hashrate to see the window and where the price value can react within. and then the price reacts within that window after, when that window changes.

[Hold-n-play]

Thanks again - very thoughtful! just out of curiosity  - how did you get that window of value?

it has absolutely nothing to do with market prices or exchange rates. or historic price data where naive people pretending to be technical analysers just draw trend lines..
(true technical analysis has nothing to do with market price trend analysis)
..
it has everything to do with looking at things like the UTXO realisation rate of a certain time period. and also the mining costs of different regions on the planet.

which is where the value window comes..
taking these measures and then and only then looking at where the price sits within that window shows where good or bad value is of the price. whether bitcoin is cheap or expensive.

i have been doing this many years and the price always fits within the window(of the particular period of time it applies to) because economic, social and general value sentiment causes people to either be in a high buying pressure/ low selling pressure when its cheap and high selling pressure /low buying pressure when its expensive. where at both ends it reaches its bottom and peak when it reaches certain amounts..

.
its why bitcoins 'bottom' is not zero. , for bitcoin to ever 'absolute zero' bitcoin would need to have an unfixable bug where by all asics just give up. something not really ever going to happen from current prospective of reviewing the code and the 13 years of bitcoin functioning.

the bottom could decrease but that would require alot of hashpower switching off
(like 18's window that was $5.6k-$20k but dropped to $3.8k)
(november 2018 hashrate went from 60exa to 38exa)

and yes the hashrate dropped first.. and the price dropped a fortnight after. so its more about watching the hashrate to see the window and where the price value can react within. and then the price reacts within that window after, when that window changes.

Seems like both unique and advanced approach to analyze btc movements! Thanks to you, I just found and finished reading a good article on UTXO, strongly recommend to others as well. I am not sure if I understood everything correctly, but I completely agree with you, UTXO seems like a much better approach that just looking at some historic prices. Wish I have merits for you, Franky1!

https://medium.com/galaxy-digital-research/price-implications-of-bitcoin-utxo-age-changes-6ec8e1dd6a62

[TheNineClub]

Goldman Sachs Group lends money to Coinbase backed by bitcoins bringing money from the Wall Street to the digital-asset space

https://www.bloomberg.com/news/articles/2022-05-03/coinbase-is-on-other-side-of-goldman-s-first-bitcoin-backed-loan?sref=fgHqaWRV

Trying to open up some discussion here - do you believe that this news is potentially good one for crypto and for Defi projects as well?

As crypto is on right on the edge of returning to a more modest state, or breaking through it's celing, it's really hard to tell if this is good or not (in the long run), but it was bound to happen as the traditional financial institutions want in on whatever can make money. It's definatelly good for that breaking through the celing i mentioned, but is that wat is overal good for the project, that remains to be seen.

[franky1]

Seems like both unique and advanced approach to analyze btc movements! Thanks to you, I just found and finished reading a good article on UTXO, strongly recommend to others as well. I am not sure if I understood everything correctly, but I completely agree with you, UTXO seems like a much better approach that just looking at some historic prices. Wish I have merits for you, Franky1!

https://medium.com/galaxy-digital-research/price-implications-of-bitcoin-utxo-age-changes-6ec8e1dd6a62

dont try using the UTXO realisation value or the hashrate value window to be looking at the day-by-day stuff trying to find predictive triggers of short term changes.
in short you cant use it to day trade or predict daily movements.

when exchanges have coins in their customer deposits addresses and exchanges move coins to cold store. a few people (whale alert naive followers) think that seeing a movement of 10k btc is a trigger for a massive price spike or crash.. its not.. its just exchanges fiddling about with their wallets.

just use these bits of info to evaluate where the general sentiment of where most people value their coins.
EG (im using random made-up numbers below, just for example, dont quote these numbers below)
 if over 50% of people in the last 18 months are holding coins above $35k .. then over 50% of people are not willing to sell for less than $35k

use this to create a grid of sentiment of how strong the desire is to sell and put that into a gauge of value where if the price was $65k and 98% bought below $50k then thats a strong gauge where nearly everyone wants to sell. meaning the buying pressure is about to die out.

[Hold-n-play]

Seems like both unique and advanced approach to analyze btc movements! Thanks to you, I just found and finished reading a good article on UTXO, strongly recommend to others as well. I am not sure if I understood everything correctly, but I completely agree with you, UTXO seems like a much better approach that just looking at some historic prices. Wish I have merits for you, Franky1!

https://medium.com/galaxy-digital-research/price-implications-of-bitcoin-utxo-age-changes-6ec8e1dd6a62

dont try using the UTXO realisation value or the hashrate value window to be looking at the day-by-day stuff trying to find predictive triggers of short term changes.
in short you cant use it to day trade or predict daily movements.

when exchanges have coins in their customer deposits addresses and exchanges move coins to cold store. a few people (whale alert naive followers) think that seeing a movement of 10k btc is a trigger for a massive price spike or crash.. its not.. its just exchanges fiddling about with their wallets.

just use these bits of info to evaluate where the general sentiment of where most people value their coins.
EG (im using random made-up numbers below, just for example, dont quote these numbers below)
 if over 50% of people in the last 18 months are holding coins above $35k .. then over 50% of people are not willing to sell for less than $35k

use this to create a grid of sentiment of how strong the desire is to sell and put that into a gauge of value where if the price was $65k and 98% bought below $50k then thats a strong gauge where nearly everyone wants to sell. meaning the buying pressure is about to die out.

it does make sense to use for a trend analysis rather than for a day to day staff!

[wilkine]

Yeah, I think it's good
could really see how Bitcoin as a digital asset and currency in the real world are emerging with each other

[NotATether]

As for what it will do in general, hard to say. It's looks like any other asset backed loan. So you get better interest rates since they have a hard asset to sell if you default.
Probably good for both companies. GS gets to make a low-ish risk loan and CB gets financing with better rates then the open market / bond sale type thing.

The only effect it's going to have on anyone is that it's going to keep Coinbase's head above the water.

Yeah... not very attractive news to write about (at least for Coinbase), is it.

"Coinbase gets loan from Goldman Sachs to save it from insolvency"

"Enormous crypto depression forces exchange to get operating loan"

or god forbid:

"Sachs on the brink of second bailout for exchanges"