Before You Invest in Bitcoin, WATCH THIS!!! (Ep. 9)
Dave Lee on Investing
English - January 08, 2020 23:00 - 24 minutes - ★★★★★ - 138 ratingsInvesting Business News Business News Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
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I haven’t heard a good framework on how to evaluate Bitcoin as an investment, so in this video I’ll attempt to share my thoughts on how one can evaluate Bitcoin and cryptocurrencies as an investment.
There’s a lot of hype and fear around cryptocurrency, and I try to examine both the bull and bear cases.
The two angles I use are the following:
1. Value by popularity
2. Value by dividend of future capital returned (i.e, intrinsic value).
Bitcoin as a “store of value” is largely a value by popularity proposition. And a value by popularity carries inherent risks especially if Bitcoin whales decide to transfer their assets away from Bitcoin into another crypto coin or elsewhere.
However, cryptocurrencies if they can capture a significant portion of increasing digital transactions could have intrinsic value if they can capture value in even a small % of all transitions.
Additional links:
https://blog.coinbase.com/what-happened-in-crypto-over-the-last-decade-ee6a2552d630
https://blog.coinbase.com/what-will-happen-to-cryptocurrency-in-the-2020s-d93746744a8f
Enjoy! And please share this video with others on Reddit, Facebook groups, and forums.
Check out my archived articles/posts on Tesla: https://teslamotorsclub.com/tmc/threads/articles-megaposts-by-davet.23473/#post-485768
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