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, February 28, 2024

Bitcoin's Price Rise

 


Now and at 100 000 USD, which will happen within an year, Bitcoin is overvalued, according to Wolfteam Ltd.'s projections and estimates.

Bitcoin's intrinsic value or 'fair' price for the next 3 years is 71 000 USD, according to Wolfteam Ltd.'s estimates.

It is difficult to put a constant intrinsic worth for Bitcoin using conventional discounted cash flows models, comparable valuation ratios, asset based models and precedent transactions, which are tools to estimate value in economics.

The reason is Bitcoin is a new emerging, moonshot technology, the underlyings, fundamentals of which change constantly, daily, which affects Bitcoin's intrinsic value. Dynamic valuation is the only way to tackle the valuation of Bitcoin, in order to imbue the ever changing dynamics of the blockchain technology.

Bitcoin's price is getting ahead of itself. Bitcoin is in a bubble currently. The bubble is small, but if Bitcoin's price surpasses 120 000 USD and subsequently the blockchain, cryptocurrencies, Bitcoin bubble pops, the implications will well affect the global economy and the bursting of the Bitcoin bubble could entail a shallow global economic recession. NVIDIA, Intel, AMD, Arista Networks and many other technology companies' faith is deeply intertwined with Bitcoin's faith. For the mining, creation of Bitcoin computer users heavily utilize the usage of computer chips, graphic processing units produced by NVIDIA, Intel etc. Many other related producers' is deeply intertwined with the faith of Bitcoin.


Not surprising, NVIDIA has a market capitalization of circa 2 trillion USD, riding high on GPUs usage to mine Bitcoin.

Actually, artificial intelligence, AI is to not a small extent driven by Bitcoin and the hashing tree blockchain algorithm needed to produce Bitcoin and other cryptocurrencies. Not surprisingly the Magnificent 7 technology stocks namely Apple, Microsoft, Alphabet, Amazon, Meta, NVIDIA and Tesla are leading the US stock markets rise with stratospheric valuations and market capitalization of more than 1 trillion USD. The Magnificent 7's rise is also closely related to Bitcoin's price rise.

Artificial intelligence, AI is taking over the world and Bitcoin's rise puts strong, additional wind in the sails of AI.



Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)