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Author: Admin | 2025-04-28
Production like a stock, a bond, or real estate. Therefore discounted cash flow (DCF), the best valuation method ever created, cannot be applied to digital currency. Bitcoin could be worth $100,000 ... or a million dollars ... or $5. No one knows, and anyone who claims to know is lying.Sometimes people point to bitcoin millionaires and billionaires as proof that it should be bought today. That is a terrible reason to buy anything. People who got in on the ground floor were lucky or smart or both. But none of that means the riches will continue. After all, some people get rich getting in on the ground floor of Ponzi schemes (if they get out in time) or become multimillionaires from a lottery ticket. That doesn’t mean that those are sensible ways to build wealth.PARIS, FRANCE - FEBRUARY 16: In this photo illustration, a visual representation of digital ... [+] cryptocurrencies, Bitcoin, Ripple, Ethernum, Dash, Monero and Litecoin is displayed on February 16, 2018 in Paris, France. Digital cryptocurrencies have seen unprecedented growth in 2017, despite remaining extremely volatile. (Photo Illustration by Chesnot/Getty Images)Getty ImagesTo the extent that bitcoin has value, its value is derived from its scarcity. Like any precious metal, it lives or dies by its limited supply. Its boosters explain that its circulation is curtailed by the “halving” that puts brakes on new production over time. Thus, its amount is finite. But so is gold’s. And gold’s long-term return, except during periods of high inflation, has been
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