From 32b2ca048fbecb8ee61429d65afa3ebbe8b4fad4 Mon Sep 17 00:00:00 2001 From: EilidhRoss1 <98904290+EilidhRoss1@users.noreply.github.com> Date: Tue, 19 Jul 2022 14:37:39 +0100 Subject: [PATCH] title update --- claims/is-valuation-model.md | 6 ++++-- 1 file changed, 4 insertions(+), 2 deletions(-) diff --git a/claims/is-valuation-model.md b/claims/is-valuation-model.md index bb93a3b..2344ac5 100644 --- a/claims/is-valuation-model.md +++ b/claims/is-valuation-model.md @@ -1,4 +1,6 @@ -# Crypto assets do not have a verifiable valuation model +# Do crypto assets have a verifiable valuation model? +**Crypto assets do not have a verifiable valuation model** + Crypto tokens have no reliable [valuation method](../concepts/valuation-model.md). It is not possible to develop a theoretical [value](../concepts/value.md) for a crypto token because there is no demand curve generated by a [use case](../concepts/use-value.md) or any [income or cashflows](../concepts/income-cashflows.md) associated with the [security](../concepts/security.md). Crypto tokens have a strictly zero [fundamental value](../concepts/fundamental-value.md) and a [present value](../concepts/present-value.md) of zero because they have zero income. Instead the price of a crypto asset swings about wildly depending on the whims of fluctuating demand, random sentiment and market mania of the larger crypto [bubble](../concepts/bubble.md). Crypto assets are a manifestation of the [greater fool theory](../concepts/greater-fool-theory.md) and the price of a crypto asset is defined simply by what people believe the next "fool" will pay for it. @@ -17,4 +19,4 @@ Other products in [bubble](../concepts/bubble.md) such as tulips or beanie babie 1. Diehl, Stephen. 2021. ‘The Intellectual Incoherence of Cryptoassets’. 7 November 2021. https://www.stephendiehl.com/blog/crypto-absurd.html. 1. Krugman, Paul. 2018a. ‘Bitcoin Is Basically a Ponzi Scheme’. The Seattle Times 30. 1. ———. 2021a. ‘Technobabble, Libertarian Derp and Bitcoin’. The New York Times 21. -1. ———. 2021b. ‘The Brutal Truth About Bitcoin’. The New York Times 21. \ No newline at end of file +1. ———. 2021b. ‘The Brutal Truth About Bitcoin’. The New York Times 21.