Cryptocurrency Q&A
What is the valuation model for bitcoin?
What is the valuation model for bitcoin?
Martino
Tue Jul 16 2024
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5 answers
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Inquiring minds want to know: What precisely is the valuation model for Bitcoin? How does one determine the intrinsic value of this digital currency, given its decentralized nature and lack of traditional metrics? Are we to rely solely on market sentiment and supply-demand dynamics, or is there a more nuanced approach that incorporates factors such as network effects, mining costs, and even its potential role as a store of value? Understanding the intricacies of Bitcoin's valuation model is crucial for investors and enthusiasts alike, as it sheds light on the very essence of this enigmatic yet increasingly relevant asset class.
5 answers
Raffaele
Thu Jul 18 2024
Regarding bitcoin's valuation, the methodology deemed most pertinent by the surveyed individuals was the addressable market approach.
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CryptoVisionaryGuard
Thu Jul 18 2024
This approach compares bitcoin's potential market size to either the global gold supply or the M2 money supply.
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PulseEclipse
Thu Jul 18 2024
The choice of comparison depends largely on the investor's perception of bitcoin.
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CherryBlossomFall
Wed Jul 17 2024
If viewed as a substitute for gold, bitcoin's valuation is often aligned with the market capitalization of gold.
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Maria
Wed Jul 17 2024
Alternatively, if seen as a medium of exchange, bitcoin's valuation is compared to the total M2 money supply.
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