Disclaimer:

Disclaimer: The blog posts and comments on this blog and posts on social networks are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is". The blog is stocks analysis and valuation, Bitcoin, Cryptocurrencies, Artificial Intelligence, AI, deep-learning focused. Independent, unbiased AI insights. Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blog posts on this blog and posts on social networks. Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blog post and posts on social networks! The blog is property of Wolfteam Ltd. www.wolfteamedge.com Respectfully yours, Petar Posledovich

Wednesday, July 26, 2023

How To Value Bitcoin?

 


 

To Bitcoin the traditional dividend discounting models cannot be applied, since Bitcoin does not distribute dividends is the narrative on Wall Street and among many investors and analysts. But also Meta, Alphabet and Amazon do not pay out and have never paid out any dividends.

And yet Wall Street research analysts apply dividend discount models to Meta, Alphabet and Amazon and value them with dividend discount models.

So if Bitcoin starts distributing dividends in 20 years, to suppose, than dividend discount models can be applied to Bitcoin. This is not so a farfetched assumption, if one looks at Wikipedia. Wikipedia is also community created, but can easily make a lot of money by accepting paid internet advertisements on www.wikipedia.org or via donations.

Sooner or later, Bitcoin's public ownership in practice can be structured as a foundation or firm and work for profit.

In addition, many firms which are using Bitcoin and the underlying blockchain technology could end up paying royalties to the Bitcoin community or the world, for that matter, which does own Bitcoin and can finally put a structure to its Bitcoin ownership as a firm or foundation.

 So Bitcoin is valuable, Bitcoin can be valued, that is.

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