Guide to Determining Bitcoin’s Fair Value

The Rise of Bitcoin

Bitcoin remains the leading decentralized cryptocurrency, which has over the past decade increased interest in potential applications using its core blockchain⁤ technology. Yet, ‌in an extremely dynamic‌ (and​ often volatile) market, Bitcoin has also found its fair share ​of competitors—including ​other​ digital ⁤tokens like EOS, Cardano, Ripple, ⁣and Ethereum (among many ​others)—all of which have experienced both bull and ⁢bear runs.

Today, the market values of many blockchain-based tokens are in the several ​million to billions of dollars, with the entire crypto ⁢ecosystem worth more than a⁢ trillion dollars. Crypto has developed into a major economic force.

So how can one determine what​ the market sees as a digital coin’s fair value, or how⁣ can⁤ one arrive at a Bitcoin valuation? How do ​you⁣ even think of intrinsic⁣ value ⁤for something that only exists within computer networks, but yet has appreciated in price faster than​ the shares of even the hottest technology…

2023-08-20 ​11:15:32
Link from www.investopedia.com
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