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RE: The Big Long – Valuing ETH Based on Future Cash Flows – 03/12/18

in #cryptocurrency7 years ago

Very interesting dynamics here but as you state a lot of wild cards involved here. For example, how do we account for the operational expenses of mining the assets? Transaction fees covered those partially as well, right? I like the approach but until most of these networks are fully deployed, we will not know the value realization of them. I believe that the MV=PQ model may prevail until networks start to create steady flows of value, if they achieve them.

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I explain how operational expenses can be paid for here

However, one key difference is that with blockchain-based networks, investors may pay for maintenance costs, operational costs, and future improvements partially or wholly through inflation of the native asset instead of completely with earnings.

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