Re:As an investor, why is crypto so hard to value?
by WastingMyTime89 on Monday December 13, 2021 @03:47AM
(#29537886)
> Valuation is the estimation of the present value of future free cash flows.
That’s only DCF valuation. It is not the be all and all of valuation. DCF is a way to value perpetuity. It makes sense for assets you can assimilate to a perpetuity (like a company). It makes no sense if you can’t. The easiest counter examples are raw materials and currencies.
That’s only DCF valuation. It is not the be all and all of valuation. DCF is a way to value perpetuity. It makes sense for assets you can assimilate to a perpetuity (like a company). It makes no sense if you can’t. The easiest counter examples are raw materials and currencies.