tag:blogger.com,1999:blog-8152901575140311047.post3266224024738482903..comments2024-03-28T12:49:46.624-04:00Comments on Musings on Markets: Bitcoin Backlash: Back to the Drawing Board?Aswath Damodaranhttp://www.blogger.com/profile/12021594649672906878noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-8152901575140311047.post-45752833947987635652017-11-28T17:06:05.754-05:002017-11-28T17:06:05.754-05:00"Applying the same test to Bitcoin, I am left..."Applying the same test to Bitcoin, I am left nonplussed about what value to attach to a digital currency if at the end, no one uses it in transactions, it has no aesthetic value and it produces nothing utilitarian."<br /><br />Bitcoin has proven useful for something beyond holding as a store of value: making a transaction with an anonymous person anywhere on the planet. Which is why its successful for transactions where parties hope to remain anonymous (including some unscrupulous businesses). Rather than point this out to criticize BTC, I think this gives it some sort of floor value if speculators decide to move on. There will always be demand for crypto because there will always be people who want to make anonymous worldwide transactions (including illegal ones).Bergerhttps://www.blogger.com/profile/09213260380203964632noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-88399107289359378802017-11-10T14:40:57.056-05:002017-11-10T14:40:57.056-05:00Hello Professor,
I think there is a little misunde...Hello Professor,<br />I think there is a little misunderstanding about your conclusion of “Bitcoin is not an asset”, because “it does not generate cash flows” alone. Let make a point clear: bitcoin is an asset, but it is not an asset that generate cash flow. You are restricting a concept that is broader. See, in your book “Damodaran on valuation” you rated assets into three groups: assets that are either generating cash flows currently or are expected to do so in the near future; assets that are not generating cash flows currently but could in the future in the event of a contingency; and assets that will never generate cash flows.<br />So it is not correct to conclude that “Bitcoin is not an asset”, because “it does not generate cash flows”. <br /><br />Msc. Arthur Mesquita Camargo<br />Catholic University of Brasília <br />www.argt.com.brAnonymoushttps://www.blogger.com/profile/08061339538583399598noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-23320202702916216232017-11-08T14:31:28.440-05:002017-11-08T14:31:28.440-05:00Great and Powerful, Aswath! How about an analysis ...Great and Powerful, Aswath! How about an analysis of the proposed Disney and Fox merger?<br /><br />I know from your lectures you have stated mergers result often in negative or, at best, zero synergy.<br /><br />Instinctually it seems like a huge culture-clash with two disparate products, also liabilities regarding Fox's politics, which regardless of the measure of their objective accuracy, are often the focus of public criticism, but I'm curious about your thoughts on this one!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-53521238994832449532017-11-05T08:42:43.796-05:002017-11-05T08:42:43.796-05:00To get good profit on crypto investment ICOs are t...To get good profit on crypto investment ICOs are the good option to invest. But since the number of ico in market are more and it is difficult <br /><br />to find out which one is legit and which one is scam.Visit coinkhoj to find the <a href="http://coinkhoj.com" rel="nofollow">list of ico with good return for <br /><br />your investment</a>. Good ico can multiply your investment into 2x, 3x or even more.sunitahttps://www.blogger.com/profile/00917066208318532588noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-61433882036100893852017-11-04T23:12:39.658-04:002017-11-04T23:12:39.658-04:00I want to begin this comment by making it clear th...I want to begin this comment by making it clear that like to play the "value game" as well, and it hinges on the faith that price converges on value.<br /><br />My question is what mechanism causes price to converge on value. Is it just random that the market "wakes up" eventually and prices the asset at fair value? I know faith implies that we can't know something is true for certain, however I am wondering if there is a good attempt at explaining how this process works.Unknownhttps://www.blogger.com/profile/17386477361991336571noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-6861595440877871142017-10-27T19:36:50.135-04:002017-10-27T19:36:50.135-04:00Hi. Take a look a this article, it has a very inte...Hi. Take a look a this article, it has a very interesting point of view on this topic.<br />https://blog.chain.com/a-letter-to-jamie-dimon-de89d417cb80<br />I am really curious to hear your views on the concept he presents, this new form of organization called decentralized applications. In a way matches with your view of crypto as "lubrificants".<br />Best regards,<br />Leandro (from Sao Paulo, Brazil)Leandro Vilelanoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-60143733248264236242017-10-27T14:14:30.978-04:002017-10-27T14:14:30.978-04:00Does it really matter how you classify BTC? The mo...Does it really matter how you classify BTC? The most interesting question is surely: what is it worth, and why is it worth what you say it's worth? Some people -- for example, Vitalik Buterin, the co-founder of Ethereum has pointed to the quantity theory of money as an avenue for valuing BTC (see http://vitalik.ca/general/2017/10/17/moe.html). Others have used what seem rather simplistic models, such as: wealth held in the US dollar amounts to x; if y% of this was held in BTC, BTC would be worth z. Still others have tried to value BTC based on how much it costs to mine (in the same way that the cost of mining gold has some relevance to its market value). Have you looked at any of these methods, professor, and if so have you drawn any conclusions? <br />PS I think I know the answer: you have, and they don't stand up to scrutiny!econoclasthttps://www.blogger.com/profile/11016142337468751477noreply@blogger.com