Fair Value in Crypto | investingLive

Summary for the busy crypto investors

  • You can talk about fair value in crypto, but it is different from equity DCF (discounted cash flow) methods.

  • For Bitcoin, think digital commodity: Scarcity, network usage, miner economics.

  • For Ethereum, think platform token: Supply burn, staking, and network demand.

  • Psychology and technicals can dominate timing. Fair value is a regime map, not a single target.

  • Be selective with altcoins as many lack durable fundamentals.

Not financial advice. Trade and invest at your own risk.

Q1) What is “fair value” in traditional finance?

In equities, fair value usually means the present value of expected future cash flows discounted for risk. Bonds use coupons and default risk. Real estate relies on capitalized…

Source link