From the course: AI in Fintech Essential Training (2019)

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Financial valuation models for cryptocurrencies

Financial valuation models for cryptocurrencies

From the course: AI in Fintech Essential Training (2019)

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Financial valuation models for cryptocurrencies

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- [Narrator] When it comes to financial models for new age fintech assets, or any other asset, the devil is always in the details. We can make any assumptions we want in a financial model, and that'll determine whether that model is accurate or absurd. I'm in the zero four zero 3 begin Excel file. Now this particular model is a model that I created for valuing Bitcoin. And this is from a few years ago, but, you know, the basic principles still hold. Now, if we wanted to understand where we come up with the discounted or projected value of Bitcoin, of $9,335, it comes from various assumptions we've made based on five different types of valuation approaches. The world wealth approach, the wallet value approach, the mining profit and miner's cost approach, and then the alternative cost or alternative coin approach. All financial models start with some sort of assumptions about where value derives from. Now normally, when we…

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