Stocks have a PE ratio. One of many different metrics developed to help investors determine the value of the stock.
Not sure if you ever noticed anything I've written about "confusing price and value" but your comments today indicate you are aware of how it happens.
In the long run we need crypto value metrics and I'll propose a generic term of 'PV ratio' or just PV for short. PV means Price to Value ratio, since cryptos don't have Earnings.
You mentioned Burniske employing the equation of exchange. That would be a PV-sub-ee metric. What would that be today?
Then you mentioned the cost of mining argument and poked some valid holes in it, but hey IMHO anything is better than nothing which is what we've got now. So I'll propose a PV-sub-mc (for mining cost) as potentially useful value metric. And conveniently ignore the difficulties caused by different power costs as an inconvenient detail to be resolved later. And also ignore the metric can't be applied to cryptos that can't be mined.
Thanks for shining your insight on a question near and dear to my avaricious heart.
Currently crypto investing is the wild wild west, but it won't always be so. Some useful and usable metrics will help increase the size of the crypto market.
Regards,
Rick
My current projections of a bullish 12/26 EMA cross for BTC, ETH, and LTC show BTC in 3 days, ETH in 6 days, and LTC in 12 days. Caveats of course YMMV and all attempts to predict the future are subject to change without warning. Edit note: While getting ready to pull the trigger on BTC in a couple of days I found an error in my linear projection formula. about 4 hours after my original post I corrected the estimates shown above by adding 1 day to each.
RE: Can Bitcoin Go to Zero?