Crypto Security & Coinbase’s S&P 500 Milestone: Risks, Opportunities, and the Future Explained

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3:12So let's get into the crypto conversation. Last week, Coinbase was named into the S &P 500. And, you know, that skyrocketed their stock and is also been encouraging news for the crypto community as a whole. So going forward, but they also had an issue as far as for sure security breach. So let's talk about the security issue. And let's also talk about Coinbase future as far as its stock price and, you know, stability as a company. I think the security issue is just a penalty of leadership I think Brian handled it Pretty well I think he was very direct In addressing it he didn't Skirt around The leak of the news Or the break of the news So I do like that as far as them being included A lot of people were asking Does this give crypto a lot more Credibility and I'm going to be Honest with Bitcoin if it's the highest return Asset of all time how much more Credibility does it need it's outperforming bitcoin or no bitcoin crypto or all right cryptocurrencies outside of bitcoin because i think i think at this point people have already solidified bitcoin yes when they say um give credibility to crypto i think they're talking about every other cryptocurrency outside of bitcoin most i think are not institutional assets to hold long term even on the retail side um i know I don't want to cause a war between other crypto factions, but there's only one to invest in currently if you want an incredible return.

4:55I think the cryptocurrency market at large needs some reform and just needs better projects for sure. But as far as Coinbase's inclusion, I think it goes to the testament of people want higher returns and they want something that isn't necessarily tied to the dollar in the current regime. um do i like moon coin or solano the most i mean i think we we've had that conversation enough um xrp is still fighting a good fight and hopefully that'll make a turnaround but if you want some exposure that is not tied directly to michael saylor coin is a good alternative even though i think microstrategy is better but i think we can be very honest the overall crypto market there is nothing to invest in but bitcoin yeah i think that's what makes it interesting is that when you bitcoin and coinbase are synonymous with each other at this point because coinbase is the largest custodian of bitcoin in the world they own 12 of all the bitcoin yeah right at this point um right now i think they said that they manage over 400 billion in cryptocurrency which is a great uptick from last year where i think they closed at 325 billion but they also are the largest custodian of ethereum as well and so if it's we will it impact the entire space no will it impact certain coins yes for sure um ethereum is one of them they also are the largest custodian of solana as well and so those are three coins if coinbase is the custodian of and you're trying to invest in a space without directly investing in it yeah coin makes a lot of sense and it's obviously the first digital asset to to be on the s p 500 so it's it's a major monumental moment um like you said bitcoin has already been solidified once it crossed certain thresholds 50 000 75 000 100 000 now it's been there but coin it i mean it's a good investment if you're looking to be in the space without directly owning those coins uh well yeah for sure pushback thank you well no no no no no i was going to say but because for people that's listening the close all right the the next best thing to not owning bitcoin is is owning the bitcoin etf ibit so it's related coinbase is related but it's not direct because some people it's still an educational process that for sure so i don't people just to fully understand because we can't take it for granted owning coinbase is not like owning bitcoin it's it's related because it's like what you just said it's the brokerage but if if you do want to have if you want to mimic bitcoin's performance on the stock market and not actually own bitcoin and not have to you can you can buy ibit and there's other uh bitcoin etfs which track bitcoin now why would you do that because if you feel like you're not 100 confident with crypto as far as the security there's no recourse if money if money gets if your crypto gets stolen ibit is on the stock exchange so it's regulated you get it through the brokerage there's some level of security there's it's also that's important for people to understand because a lot of people still don't understand crypto they understand bitcoin they want to buy it but they don't understand it.

8:19They don't understand the nuances of how to keep the coin safe and the difference between a cold wallet and a hot wallet. It's kind of like mumbo jumbo. And then for the people that was like, all right, well, if you don't invest in Bitcoin, then Ibit is not Bitcoin. Yes, true. But the thing about Bitcoin is that it's liquid. You can always buy Bitcoin. So if you can buy Ibit and at any point in time, cash that in and buy Bitcoin. But at least you're actually still participating in upward mobility of Bitcoin if you feel Bitcoin is a good investment without having to go through all of the hurdles and obstacles that could potentially happen because of owning the outright cryptocurrency.

9:05I got to ask a million dollar question. Why I bid over MicroStrategy? well because well so ibit tracks bitcoin dollar for dollar as far as like whatever it does ibit does that micro strategy is once again that's like a coin based type thing but it's more centered around bitcoin where that is a bitcoin linked investment but it's not direct so bitcoin can go up and micro strategy can go down hypothetically right like it but it's also designed to it has higher volatility than bitcoin so the micro strategy is something that if bitcoin returns 10 microstrategy might do 20 percent yeah right so it's like you get higher leverage so that's why a lot of people have done options on microstrategy and then just purchase bitcoin purchase bitcoin for the long haul that's a good strategy options on microstrategy so you get that accelerated growth in a short period of time.

10:04But for Bitcoin to ride, so I would say if you really just want to just do Bitcoin and want an alternative, iBit is the way to go. Micro strategy is a, I'm trying to just fast track this thing and get as much money as I possibly can while Bitcoin is going up. Yeah, and it's cheaper. If you get in at 43 bucks, $43.20 on iBit, it's currently at the high, well, not a high, at$59. almost at the high of 61. It's way cheaper than MicroStrategy as well, for those of you who are looking for a more cost-effective alternative. What do we think about the appreciation potential for Coinbase now that it's being added to the S &P 500?

10:44How many funds will it be in? Will the price increase over the next 6 to 12 months? I think so. On the institutional side, and just from a validity standpoint, it does take some of that concern or worry away from, is this too volatile? to tell, well, if it's in the S &P 500, it has to be legit. And you have to give Brian credit. He's fought through a lot of wars business-wise to be able to survive this. So I think their inclusion is needed and it's very good. And credit to S &P for including them because there's a lot of legacy companies that they probably could have kept in, but I'm glad that they were included.

11:23and i think they should get to 378 but they were included uh discover financial was removed but they they were acquired i believe uh discover financial was acquired um but it's interesting like you said like they ipo'd in 2012 here we are in 2025 yeah when they ipo'd it was an eye it was kind of around this idea like will this space even exist exist yep right so he he wasn't coming in with the same type of favor that a lot of companies come in with so to be here 13 years later and being part of the the s p 500 it is a monumental moment uh but i mean the rent so the security part is part of it it used to feel like the safest way to do it if i didn't know anything was to be coinbase we know that's not to be true um from some stories that we've obviously heard and experienced but i mean he put out a ransom the other day he was like look they try to extort me for 20 million i'm getting 20 million to the people who can find them yes smart move yeah that was okay brian brian you can't pay any terrorists man because if they pay that 20 somebody else is gonna hack and ask for 200.

12:35it's a good business lesson you cannot pay that extortion fee yeah and as the the price of bitcoin is going up you've seen the amount of crypto theft going up absolutely I mean, this is part of it. So security around that space is going to be paramount, especially as that price continues to climb and climb and climb. Because we don't see it stopping here at$100 ,000. Right? $150 ,000, it looks like that's a possibility. Around a corner. Right? So, yes, security around the space is going to be a wave. Oh, the last note. Crypto founders and crypto mega whales, up your security. I know a lot of people may have seen a video where the husband and wife was almost kidnapped.

13:16If you go look at the amount of crypto whales that have had unfortunate circumstances the last three or four years, please be mindful. I will say that. And it's$2.2 billion was stolen in crypto in 2024. And so far this year, first four months,$1.7 billion has already been stolen. and that doesn't even account for the full crypto hacking and everything that's been going on. So when you look at it from a standpoint of crypto, the security aspect has not been solved. It's not an issue that has been solved. It's an issue that's actually only getting bigger. And we posted this on Instagram, but, you know, there's a Michael Turpin.

14:03So it's interesting. this made news. 2018, Hacker stole$24 million worth of crypto from his phone. And how they did it was through a SIM swap scam. So they convinced AT &T to transfer his phone number or they had somebody on the inside do it and they stole $24 million from his phone. And he actually sued them for$224 million. So the reason why this SIM swap thing is interesting is that it actually happened to me. I can't prove this, but I'm pretty sure that's what happened because when my Coinbase got hacked, I had to take my phone in to get serviced and then we went to LA and then I actually had COVID.

14:47It was a whole long story, but my phone stopped working for like two days and then when it came back on, that's when my Coinbase was hacked. So I think that somebody inside the store switched and saw your Google and Instagram and said, oh sim card swap so that's this is a real thing so coinbase security issue has not been solved no and in the max what is the mass that's insured do we know is it is it 200 is it is it if you guys see no there's no insurance that's why i said if you want if you want a safer a route is ibid because there's no insurance on crypto right so there's nothing you can do about it even if even if it's on coinbase is not there's no there's no insurance for that be more short corn base is always that's brown but you do need you do need to fix that issue for sure so triple factor authentication or something triple the next leg is yes the vast majority of people's not going to do a cold wallet right the cold wallet is the it looks like a usb drive disk drive thing and that's when you actually have you know your code and you actually own your own crypto meaning you're the sole custodian of it um but for most people especially if you got a lot of money we're conditioned and trained to have institutions hold our money like you know what i mean like most people are not going to have five million dollars and just put it in in a safe they would rather put five million dollars in the bank feel comfortable with that right they feel comfortable putting five million dollars in charles schwab they don't feel comfortable actually having five million dollars in their in their possession so i don't know i think crypto experts are going to have that but the average everyday person i don't think is going to be comfortable with that it'd be interesting to see what the encryption is right if you're holding 12 of the world's bitcoin and you're managing over 400 billion dollars of assets yeah how is that How is that protected?

17:06While being a target. Yep. I would love for somebody to break that down for us. That's interesting. Does CrowdStrike have a crypto division where they solely focus on crypto or no? I'm not sure. I'll give you that information momentarily. Yeah, because whoever finds a way to provide an extra layer of security, that's where the real money is going to be. Right. That's what I said. That's going to be. That's the way. Right. And we're speaking about crypto, but even in artificial intelligence as well. For sure. You can see how this technology, especially when we're talking about cyber companies, CrowdStrike, Palo Alto, Zscaler, all these companies, how important they will be.

17:47Not now, but I mean, definitely now, but even more so in the future as that becomes more of the commonplace. These companies are going to be needed. An illegal alien from Guatemala charged with raping a child in Massachusetts. An MS-13 gang member from El Salvador accused of murdering a Texas man. A Venezuelan charged with filming and selling child pornography in Michigan. These are just some of the heinous migrant criminals caught because of President Donald J. Trump's leadership. I'm Kristi Noem, the United States Secretary of Homeland Security. Under President Trump, attempted illegal border crossings are at the lowest levels ever recorded.

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19:07And drugs. No, I am not your guru. Back then, I lied to everybody. They have had this case for 30 years. I'm going back to my hometown to uncover the truth. Listen to The Red Weather on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts. This show contains information subject to, but not limited to personal takes, rumors, not so accurate stats, and plenty more. What's up, man? This your boy, Nav Green, from the Broken Play Podcast. Look, it's the end of the season. The playoffs are here. But guess what? It ain't the end of your season. You can always tune in with Broken Play Podcast with Nav Green on the Black Effect Podcast Network.

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