Valuation Of Hive A Difficult Task
How do we value blockchains? This is a very difficult thing to do. It is much different than a company where we have revenues and profits.
In this video I discuss some of the features of Hive that are like everyone other blockchain and some things that make it unique.
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Haha did you see my Tesla Stock interaction in which I tagged you? :D So funny
No I missed that one.
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lucky you
Thank you as always for your insights, and for opening up topics to think about. 😊
Arguably one of the most difficult aspects of valuation of not only Hive, but most other cryptocurrencies, blockchain technologies, and protocols, regardless of the uses they provide in real-world scenarios, is the fact that they are all so new. We're looking towards the future, and it's hard to determine exactly which aspects of these technologies will become popular and/or predominant, and to what degree.
Ironically, it's likely that a more proper valuation will occur in hindsight, rather than at the current time. For instance, many of us here (myself inclusive) would agree that Hive is undervalued for everything that it's able to currently provide and for what is being developed as we speak; however, for reasons unforeseen, it's possible that in the future this may not prove to be the case - although we all certainly hope that's not the outcome.
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Yeah there is really no basis of metrics to go on. We can make some up and the validity is highly questionable. They might be useful, or they might not be.
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Gracias por el video
Assuming we were able to perfectly valuate Hive down to the nearest dollar, what would we do with this information once we had it?
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Throw it away since nobody would listen anyway.
People prefer pump and hype.
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It's hard to really put down real numbers and one thing that I saw about numbers in articles is that they can be messed around with to show exactly what the person wants. So I guess it's hard to value everything going on.
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Bitcoin mining is a business. The product is space allocated for the customer's transaction in a block. The transaction fees and the block fees are the revenue.
The price of one bitcoin captures the network effect. It is speculative but that is nothing special.
Price is not value. They are two distinctions. Prices go up and down whereas a value is based upon other factors.
And yes with BTC, you could look at the fees and draw from that. But as we know, that does not directly translate into price.
The same is true with the stock market.
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That's absolutely true. But I'm tired of "value investors" telling there is no basis to value Bitcoin. There is. The more in demand block space is, there more it will cost because it is strictly limited. The price speculation is ultimately speculation on how much adoption Bitcoin will have.