Investing

Thought provoking thread about viewing & valuing Ethereum as a digital commodity vs. using Private Equity Discounted Cash Flow analysis (PE DCF).

tl;dr: Bitcoin's value is large buoyed by a "commodity premium" valuation approach. Ethereum had this but the meta has shifted to valuation based on PE DCF. For Ethereum's valuation to flourish again, it must regain the discussion about commodity premium. Taken in this light, the "sovereign economy" of Ethereum is extremely broad when considering the additional activity due to L2 networks rooted in the ETH security model.

Intuitively, this makes sense to me. Ethereum is different than "just" money as you can also "use" it for utility within the network. Having it has different properties than having gold, a stack of dollar bills, or 100 shares of Apple.

Thought provoking thread about viewing & valuing Ethereum as a digital commodity vs. using Private Equity Discounted Cash Flow analysis (PE DCF).

tl;dr: Bitcoin's value is large buoyed by a "commodity premium" valuation approach. Ethereum had this but the meta has shifted to valuation based on PE DCF. For Ethereum's valuation to flourish again, it must regain the discussion about commodity premium. Taken in this light, the "sovereign economy" of Ethereum is extremely broad when considering the additional activity due to L2 networks rooted in the ETH security model.

Intuitively, this makes sense to me. Ethereum is different than "just" money as you can also "use" it for utility within the network. Having it has different properties than having gold, a stack of dollar bills, or 100 shares of Apple.

https://x.com/samkazemian/status/1850680526086279249