What the Coinbase Effect Means for Markets

The video discusses the impact of Coinbase on the cryptocurrency market, highlighting Bitcoin's surge to record highs and the global crypto market cap surpassing $2.1 trillion. It explores Coinbase's role as a major player in the crypto space, its correlation with Bitcoin's performance, and the growing demand for crypto exposure. The video also covers how people access cryptocurrencies, Coinbase's business model, and the various use cases of different cryptocurrencies, including Bitcoin as a store of value and others like Ethereum for smart contracts.

What was the effect of Coinbase's debut on Bitcoin's market performance?

• Bitcoin's value decreased

• Bitcoin's value surged to record highs

• Bitcoin's value was unaffected

• Bitcoin's value remained stable

Why is there a high demand for exposure to Bitcoin through Coinbase?

• Because Coinbase offers the lowest fees

• Due to the lack of approved products for direct investment

• Due to the high volatility of Bitcoin

• Because Bitcoin is the only cryptocurrency available

How does Coinbase's performance relate to Bitcoin's performance?

• They are not related

• They are inversely related

• Coinbase's performance is independent of Bitcoin

• They are strongly correlated

What percentage of all crypto assets does Coinbase custody?

• 20%

• 11%

• 50%

• 5%

What is Bitcoin's primary use case according to the transcript?

• Smart contracts

• Medium of exchange

• Transaction layer

• Store of value

Which type of cryptocurrency is mentioned as serving a transaction layer purpose?

• Stable coins

• Bitcoin

• Ethereum

• Litecoin

What is still evolving in the cryptocurrency market according to the transcript?

• The market cap of Bitcoin

• The transaction layer and smart contracts applications

• The store of value use case

• The number of cryptocurrencies