cryptocurrency: understand the complexity of the fundamental evaluation
In recent years, the world of cryptocurrency has undergone unprecedented growth and popularity. The increase in decentralized coins such as Bitcoin (BTC) and Ethereum (ETH), as well as other digital resources, has created a new market for investors to explore. However, in the middle of this emotion, many investors have fought to separate the facts from fiction when it comes to evaluating cryptocurrencies. In this article, we will deepen the concept of fundamental evaluation in the prices of cryptocurrency and provide an analysis of how the real value is assessed.
What is the fundamental evaluation?
The fundamental evaluation implies the analysis of financial services, sector trends and market conditions or active to determine their intrinsic value. This approach takes into account several factors that affect a company’s ability or active to generate income and increase value over time. In the context of the cryptocurrency, the fundamental evaluation is crucial for making informed investment decisions.
The challenges of the evaluation of the cryptocurrency
Cryptocurrencies operate in decentralized networks, which can make it difficult to compare their assessments directly with traditional resources. The lack of regulation, transparency and standardization in the market has led many investors to rely on verified sources and anecdotal evidence. However, this approach is full of risks, since it can lead to inaccurate or deceptive assessments.
In addition, cryptocurrencies are characterized by an intrinsic uncertainty factor, since its value is determined by the dynamics of the offer and the offer, which can change quickly. This volatility can make it difficult for investors to evaluate the true value of a cryptocurrency without conducting an in -depth investigation.
The role of financial relations in the fundamental evaluation
A common method used in the fundamental assessment is to analyze financial relations, such as the relationship with respect to profits (p/E), to capital performance (ROE) and the debt/capital report. These proportions provide information on financial performance, profitability and financial leverage of a company or active.
In the context of the cryptocurrency, some key financial relationships that can be used to evaluate the fundamental evaluation include:
- Price / profit ratio : This relationship compares the market capitalization of a cryptocurrency with its profits by action.
- Return to the inheritance (ROE) : This relationship measures the profitability of a society when comparing net income with the capital of shareholders.
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Use of the fundamental evaluation in cryptocurrency prices
When analyzing various financial relationships, investors can obtain information on the intrinsic value of cryptocurrencies. For example:
- Bitcoin (BTC)
: According to its P/E 19 report, Bitcoin is considered one of the most underestimated activities on the market. Its high volatility and limited offer led many analysts to estimate a price range from $ 2,500 to $ 8,000 per currency.
- Ethereum (ETH)
: Ethereum egg of about 25% suggests that investors are willing to pay for their possible growth prospects and scalability capacity.
Limits and considerations
While the fundamental evaluation can provide valuable information on the intrinsic value of a cryptocurrency, it is essential to consider the limitations and complexities involved:
- Lack of data : cryptocurrencies operate in decentralized networks with limited public data, which makes it difficult to collect reliable information.
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