Bitcoin started a divergence with its fair value in March. It is currently listed as having a Price to Earnings equivalent of 6.78.
Bitcoin started a divergence with its fair value in March. It is currently listed as having a Price to Earnings equivalent of 6.78.
How is the fair value calculated?
There is a learning section in the website:
https://www.coinfairvalue.com/reference/You're claiming an imaginary, valueless token has a fair market value? And you're not only claiming that for bitcoin, but all 7000 altcoins ever created on that page, pretty much all of which will likely go to $0 followed by bitcoin itself? You might want to re-examine your methodology. How could something that doesn't even exist except in people's imaginations be considered to have a "fair market value"?
The fair market value of anything based on artificial scarcity is obviously zero. Bitcoin is a withered husk of sunk cost fallacy. The tokens don't actually have some sort of intrinsic worth. The PE ratio is supposed to be for an actual business. A business is supposed to turn a profit for it's owners, but bitcoin's self adjusted mining is designed to trend towards break even in the aggregate. You're not a shareholder by holding one of the coins either because it doesn't grant you power over anything. It's like buying a coupon to a roller coaster that may or may not exist tomorrow.
The words "PE Ratio" and "fair market value" do not apply to bitcoin at all.
Obviously you need to improve your financial education regarding the theory of currencies. I'd recommend some books, but it may be easier to start here:
https://www.coinfairvalue.com/reference/ Good luck
