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Bitcoin is undervalued on the blockchain algorithm disruption potential.
Bitcoin could start unlocking its intrinsic value with Bitcoin's price surpassing 100 000 USD in 3 years, provided Bitcoin's decoupling with technology stocks continues and relative accommodating monetary policy takes hold is Wolfteam Ltd.'s corporate view.
This speaks for the decoupling of Bitcoin's price and the price of financial technology stocks' prices.
Bitcoin's price beat by the same margin the stock prices of Visa Inc and Mastercard Inc, which are large capitalization, mega capitalization even, financial technology or fintech companies.
These developments clearly show that Bitcoin has carved out a fintech niche of its own in the finance ecosystem.
What is more, Bitcoin's price rise since the beginning of the year has surpassed the rise of the price of gold by also circa around 50 %. Generally speaking, Bitcoin has beaten almost all financial technology or fintech assets sub classes.
Bitcoin is essentially electronic money, although determined by the CFTC as an energy commodity, because it fulfills all three characteristics of money, namely unit of account, store of value and means of exchange. That said, Bitcoin's price is volatile, so Bitcoins BTC/USD exchange rate in the future is uncertain and this diminishes Bitcoin's appeal for both investing and payments transactions processing.
I forecast Bitcoin will take a small, but non negligible share of the reserve currency status market. Many central banks are preparing the issuance of stable coins, cryptocurrencies pegged to the United Stated Dollar or a basket of leading currencies. It is only a matter of time before leading, global central banks start accumulating foreign currency reserves in Bitcoin, is Wolfteam Ltd.'s view.
Although Block, PayPal,Visa and Mastercard are all trying to develop Bitcoin, cryptocurrencies offerings, all of them are still far away from competing successfully with Bitcoin's efficiency. Bitcoin's blockchain algorithm ensures good modelling of chaotic processes like payments for example and thus Bitcoin's blockchain can serve as a basis for Block, PayPal,Visa and Mastercard future strategy development initiatives.
Still the payment network needs to be further developed to facilitate efficient Bitcoin, cryptocurrencies payments. In addition the legal framework for Bitcoin is still not completely cleaned up, so as to support Bitcoin becoming a fully viable, long-term payments tool.
Bitcoin's market capitalization could compare into the future with the 10 trillion USD value of the banking industry as estimated by various sources is Wolfteam Ltd.'s corporate view.
Bitcoin is akin to small capitalization technology stocks, since Bitcoin, cryptocurrencies are still a niche, moonshot investment opportunity on the future of finance, be it Bitcoin's adoption is growing exponentially. Bitcoin's price, however has beaten the stock price rises of most small capitalization technology stocks as measured by various technology small capitalization indices.
Apart from being the modern epitome of fintech, Bitcoin is at the forefront of artificial intelligence, AI and cloud computing, today's two hottest technology mega trends. Bitcoin is artificial intelligence, AI because of the revolutionary blockchain algorithm, which is a nonlinear distributed, jump system, that can capture reality's irregularities. And since cloud computing runs on algorithms, AI that is, Bitcoin also is a huge driver of cloud computing.
Bitcoin's mining utilizes enormous amount of computing and energy resources. That is why Bitcoin is important for cloud computing on one hand and finance on the other hand.
In short, Bitcoin will revolutionize finance is Wolfteam Ltd.'s house view.
According to Wolfteam Ltd. estimates, Tesla Inc's intrinsic value is 120 billion USD, which is basically the value of the electric vehicles technology and the quality of Tesla's engineers, mathematicians and economists staff.
120 billion USD is far below Tesla's current market capitalization.
Tesla Inc gets a subsidy of approximately 7 500 USD for its average car, which makes Tesla unprofitable without the subsidy, with a significant negative margin, anyway one looks at Tesla's financial results.
Cloud computing is the latest hot technology. The hottest tech mega trend.
Apple's iCloud , Google Cloud, Microsoft's Sky Cloud have managed to slow the development of young, startup cloud storage companies like Dropbox Inc, Box Inc, which are now undervalued, in technology value investing space.
Dropbox Inc is significantly undervalued, according to Wolfteam Ltd.
I recently saw statistics on blog posts that Bitcoin is not very correlated with either stocks or bonds.
So Bitcoin can and does function as an effective portfolio diversification, risk management tool is Wolfteam Ltd.'s corporate view.
The common stocks correlation I saw statistics regarding Bitcoin for, was even below 50 %. I suppose Bitcoin is more correlated with small technology stocks' prices.
But still, Bitcoin as an investment diversification tool, seems like a viable alternative.
Bitcoin is undervalued on the benefits of the blockchain's hashing tree algorithm.
The blockchain tree algorithm allows for nonlinear modelling of random processes, which provides for adaptability, resilience of adaptive systems.
The Holy Grail of AI is nonlinear modelling as we live in a nonlinear world. Artificial Intelligence, AI so far has relied heavily on Ordinary Least Squares, OLS, which is a linear model, that adapts to minimize the errors from fitting forecast to real world data. Linear modelling is not enough, though, for modelling real world processes.
The Bitcoin blockchain hashing algorithm provides for revolutionizing artificial intelligence and thus allowing for automation of many production processes. Also many processes in services, including information technology and cloud computing's Infrastructure as a Service, IaaS business.
What is more, Bitcoin is the biggest disruption in financial services for centuries is Wolfteam Ltd.'s corporate opinion.
Bitcoin's blockchain hashing tree algorithm should be nurtured, developed slowly and quickly at the same time, akin to a marathon run, so humanity reaps the full benefits of what is a revolutionary technology like blockchain Wolfteam Ltd. estimates.
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Mergers and Acquisitions, Strategy, Capital Raising, Valuations, AI Modelling
Moderna Inc, the COVID-19, coronavirus vaccine maker, still holds at very high, large market capitalization level of 48.4 billion USD, despite the mainstream media not reporting so much on the COVID-19, coronavirus pandemic, implying the coronavirus has been defeated.
The COVID-19, coronavirus pandemic is not over is Wolfteam Ltd.'s corporate opinion.
The COVID-19, coronavirus simply adapts too well to adversity and treatment, impediments. COVID-19, coronavirus' illness still lingers and people still lose their lives in hospitals' emergency wards after loosing the battle with COVID-19, coronavirus.
Most have read the media reports, including CIA's investigations that the COVID-19, coronavirus (could be) is a laboratory experiment, which was "leaked". And these are not conspiracy theories, but official statements by government agencies, be it in a vaguely written form.
That said, according to Wolfteam Ltd.'s valuation, Moderna Inc is undervalued long-term. Not only does Moderna Inc produce the leading vaccine for COVID-19, coronavirus, but it also produces vaccines for cancer, which if successful en masse could increase Moderna Inc's market capitalization to 1 trillion USD.
In addition, Moderna Inc has been developing the messengerRNA, mRNA technology for 15 leaders. mRNA is arguably the most valuable biotechnology and essential for the preservation of humanity's health. Moderna Inc's patents are invaluable and Moderna has a significant advantage over its competitors in knowledge, patents, skilled workforce and speed, of course
Simply said, Moderna Inc looks like an extremely valuable, under-priced call option on the future of humanity is Wolfteam Ltd.'s corporate opinion.
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The combined market capitalization of Visa, Mastercard, American Express is almost 1 trillion USD.
Visa, Mastercard, American Express along with Bitcoin and cryptocurrencies are considered the epitome of financial technology, fintech today. So most possibly, Bitcoin and cryptocurrencies' intrinsic value is 1 trillion USD + and here is the implicit assumption that Bitcoin, cryptocurrencies or crypto for short do not take over Visa, Mastercard, American Express' business lines.
I remember reading years ago an estimate that the global banking business is worth 10 trillion USD.
Bitcoin, crypto are challenging modern banks' businesses via payments transfers first. So if Bitcoin, crypto achieve 'monopoly', which Peter Thiel has famously said is 'every business' goal', Bitcoin and cryptocurrencies market capitalization could surpass 10 trillion USD.
For now, Bitcoin, crypto are a niche player, but with huge potential.
In a word, to 97 %. Every internet transaction leaves a trace, Bitcoin mining including.
That said, Bitcoin mining and transfers are almost anonymous. Bitcoin, actually is akin to a global, distributed bank, a banking institution. Via Bitcoin one can store and transfer wealth, which is done by banks and fiat currencies now.
Bitcoin's anonymity is one reason for its popularity and the fact that many participants in military encounters prefer Bitcoin and cryptocurrencies for transactions speaks for itself.
To an extent, the answer to the question in the title is positive.
Bitcoin does function as a store of value, means of exchange and unit of account, which are the main characteristics of money.
You can exchange Bitcoin for United Stated Dollars, Euros and many other currencies and thus buy goods and services. In addition, you can accumulate wealth by holding, investing in Bitcoin.
Creating money or printing money previously was a privilege only for central banks and by extension of commercial banks via the deposit multiplication.
Nowadays, everyone can mine Bitcoin and create money via issuing other cryptocurrencies tokens that finance small firms' projects. One has to make sure the law is obeyed, though!
Obeying, holding on to the law fosters innovation, does not destroy it is Wolfteam Ltd.'s corporate opinion.
Personally, I do not 'buy' the theory that AI, artificial intelligence, would destroy us 'accidentally'.
I have studied (hard) statistics. I know the AI models. I can program. A bit.
The only way AI can 'destroy' humanity is if AI is programmed maliciously and left unchecked to 'optimize' humanity/people out of existence.
That is, no control check points are left.
The general stock market as measured by the main indices S&P 500, Nasdaq and DJIA could rise until September 2023.
There are still problems in the US banking sector, connected with technology companies, especially.
Silicon Valley Bank and First Republic Bank just exposed those problems.
There is still a lot of cleaning up to do in the global banking sector, both in terms of asset bubbles and irregular practices.
Much will depend on the Federal Reserve, the European Central Bank and the Bank of England.
Cloud computing has taken the world by storm.
In order to store data, analyze it, extract it and ultimately do forecasting, one needs algorithms.
Computer algorithms are built in the cloud computing offerings of the leading cloud computing firms like Amazon's Amazon Web Services, AWS, Microsoft Azure, Alphabet's Google Cloud, Apple's iCloud and smaller players like GitLab, Dropbox, Box.
So in a sense cloud computing is basically AI, artificial intelligence. Or is supported via AI, artificial intelligence algorithms, at least.
If there is a Debt Ceiling deal, Bitcoin's price could rise by a not small amount, along with technology stocks.
Markets do not like uncertainty and if there is agreement, assets considered as risky will rise, according to Wolfteam Ltd.
Most of the investors in Bitcoin are financiers and technologists and this is normal, since Bitcoin is fintech, basically. Financiers and technologists are not risk averse, so there is a significant probability that that kind of smart money will return to cryptocurrencies investing, if a Debt Ceiling agreement is reached.
Wolfteam Ltd.'s forecast is that an agreement regarding US government debt is reached.
Debt Ceiling talks will be successful is Wolfteam Ltd’s www.wolfteamedge.com opinion.
Brinkmanship helps no one.
And stocks can rise by not a small margin afterwards.
The publicly listed stocks of companies active in cloud computing, or cloud stocks, are still overvalued, despite their large falls in the last 14 months.
Amazon Web Services, Microsoft Azure and Alphabet's Google Cloud show clearly that cloud computing businesses are the main profit drivers for today's technology companies.
GitLab and Dropbox are undervalued long-term is Wolfteam's corporate opinion.
Both Dropbox and GitLab are smaller cloud computing providers, in cloud storage and Infrastructure as a Services, IaaS cloud computing.
More providers is almost always good for the economy.
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Bitcoin's price is supposed to move along the lines of small capitalization technology stocks, tech stocks with market capitalization below 2 billion USD, in US terms, that is.
Interestingly enough, Bitcoin is trying to break up the Bitcoin, small cap tech stock correlation or at least the correlation between Bitcoin's price and small cap technology stocks is diminishing as of late.
The main argument for that is that small cap tech stocks are the most hurt in the initial stages of the current dot-com bubble. Adding to that the Silicon Valley Bank debacle explains why people flock to Bitcoin and cryptocurrencies.
Actually, Bitcoin functions as an independent, distributed, public 'bank'. You store your money there and if one is careful he or she can count that his money will be there when he needs them.
www.wolfteamedge.com
NVIDIA Inc is all over the news as the poster child of artificial intelligence, AI, because of stock price's meteoric price and NVIDIA's market capitalization nearing 1 trillion USD.
NVIDIA is overvalued, according to Wolfteam Ltd. That said, every company, even outside technology, puts artificial intelligence, AI in its investor presentations and earnings presentations, much like during the 1998-2001 dot-com boom and bust almost every company from all sectors of the economy wanted to present itself as a technology company to get technology company valuation metrics or come near it, at least.
And AI is technology today.
Artificial Intelligence, AI will change the future, but not as quickly as the stock market implies.
The main thing in order to develop AI is to hire mathematicians, economists and software engineers of exceptional quality.
It is interesting what Elon Musk is saying. Elon Musk has said that the future (almost all) value of Tesla depends (almost entirely) on Tesla developing successful self-driving cars technology.
Does this imply that Tesla Inc is worthless now, because it does not have a 100 % viable autopilot technology?
Actually, I think Tesla's intrinsic worth is around 170 billion USD mainly because of the quality of its AI, engineering workforce.
AI should be developed carefully, because a spectacular failure of AI technology would set back artificial intelligence many, many years.
Alphabet Inc, Google and YouTube owner's intrinsic value is 4.5 trillion USD, according to Wolfteam Ltd., compared to 1.57 trillion USD current market capitalization of the company owning Google.
4.5 trillion USD is a staggering huge number, but Alphabet Inc has so much information with Google, YouTube and its other internet properties.
There were some management issues at Alphabet Inc, which were and are being cleaned up. So I expect Google and YouTube's treasure trove of information to be monetized and unlocked to much closer extent to its full potential.
Information is, almost, priceless and Alphabet Inc, Facebook, Amazon, Yandex, Baidu Inc and most internet giants have exceptional amounts of information on everybody and on almost all firms.
Bitcoin is a very risky asset and Bitcoin's price will fall in times of uncertainty and havoc, that was the story, at least.
Year 2023 to date and since the Russian Ukraine conflict Bitcoin disproves the narrative that Bitcoin and cryptocurrencies prices will fall in times of uncertainty.
Even as the United States Dollar is appreciating.
There are several reasons/factors that explain this:
1) Millennials, 1981-1992 have recognized Bitcoin and cryptocurrencies, crypto and think Bitcoin is a viable asset to invest in. And since most millennials have not witnessed in their accounts a large stock market fall, they view every large fall in Bitcoin's price as crypto on sale. Actually, I am from the older millennials, born 1982, so I am a bit more risk averse. I have seen, very large draw-downs, in my investment account in 2008-2009.
2) Bitcoin is seen an electronic substitute for gold, which is also electronically traded on the foreign exchange spot markets.
3) Bitcoin is slowly chipping away at the USD status as global reserve currency
4) People, millennials in particular, do not trust the governments and government institutions
5) Bitcoin is a more tacit way to transfer money
6) Bitcoin and cryptocurrencies provide a new form of money, which saves people and firms time, effort and money
7) Bitcoin is the epitome of technology. Financial technology, fintech, that is. And thus the single new asset class created in decades. The epitome of finance, that is?
Salesforce Inc's intrinsic value is 140 billion USD, compared to its current approximately 250 billion USD market capitalization.
Salesforce profitability fell from 20 % + net profit margin in previous years to circa 5 % in 2022.
Salesforce was a revenue growth story, but coupled with high net profit margin, which is rare for growing technology companies.
Now that Salesforce is only slightly profitable 140 billion USD seems and adequate intrinsic value for Salesforce Inc, according to Wolfteam Ltd.'s corporate opinion.
In the short-term Palantir, the AI, data analysis company is overvalued, but in the long-term, not so much is Wolfteam |Ltd.'s www.wolfteamedge.com corporate opinion. Palantir's AI products offering and Palantir itself could well proved undervalued.
Artificial intelligence or AI is the future, but Palantir, looked through the current valuation multiples, even for growing technology multiples, seems overvalued.
In the long-run Palantir may well become a 100 billion USD + market capitalization company, but now investors and analysts imply too high both revenue growth and net profitability is Wolfteam Ltd.'s opinion.
Bitcoin's price, remarkably has risen year 2023 to date, while Gold's price has only slightly increased, while USD has weakened.
Bitcoin is showing remarkable resilience, agility, anti-fragility in the face of adversity.
All this is due to Bitcoin's distributed decision making feature is Wolfteam Ltd.'s corporate opinion.
Starbucks Corp, the coffee company should be trading, based on its fundamentals, at 2.2 times its current market capitalization of circa 121 billion USD.
Coffee consumption is important for dealing with daily challenges.
Starbucks' revenue is growing with more than 10 % year on year on an yearly basis and Starbucks is comfortably profitable.
Starbucks is undervalued due to future growth prospects, the value of drinking coffee and the social effect of people drinking coffees in large Starbucks saloons.
Artificial Intelligence, AI stocks NVIDIA, Amazon, Microsoft are overvalued by respectively 70 % , 35 % and 28 % in the mid-term, but undervalued in the long-term due to AI's both efficiency and value creation potential.