What is the valuation and rising logic of Ethereum?
Bitcoin has never broken the $6,000 mark during this time. The $6,000 will be an important benchmark for Bitcoin to be tested. Once Bitcoin crosses the $4,200 line, it is likely that it will hit $6,000 without much resistance, but it will be under pressure at $6,000.
Counting, bitcoin has risen more than 50% since the end of last year's $3,800. I have been making a vote and will insist that Bitcoin will rise to $10,000. Of course, this is just my investment idea and is for reference only.
My investment style is to do medium and long-term value investment. At a relatively correct time, I will vote for a valuable currency. The only magic weapon that ordinary people want to win in investment is time. This is the point I have been spreading. Although you know it, you may not have done it, or you don't do it 100%. Therefore, my communication is valuable.
I used to evaluate the bitcoin against the standard. In this way we can make similar valuations for many currencies.
Today, I will share with you my valuation of Ethereum.
1. The value and characteristics of Ethereum
Speaking of Ethereum, everyone is no stranger, it is the second-ranked cryptocurrency. At the same time, the price of coins has risen from 4 cents in crowdfunding to nearly 10,000 yuan in the peak of the bull market in 2017, which is more than 20,000 times. Now the price of Ethereum is around RMB 1,000, and there are also 2,500 times of value added.
Ethereum is known as Blockchain 2.0. Its biggest feature is that it allows users to run a variety of decentralized applications and smart contracts, and handle the more complex business for us like our daily computer. This feature is known as a smart contract that supports Turing Complete.
This feature of Ethereum makes it the foundation of the blockchain world. After the advent of Ethereum, a series of similar smart contract projects came out, famous EOS, ADA, AE and so on. I believe that no matter which smart contract platform wins, the future blockchain world must be running on tens of millions of applications on smart contract platforms.
2. Ethereum's valuation of the benchmark: Microsoft Corporation
This feature of Ethereum is like the operating system of the blockchain world. Nowadays, every aspect of our lives is inseparable from computers, and every computer runs an operating system. On various desktops and laptops, Microsoft's Windows operating system has an absolute monopoly position.
Therefore, in the blockchain field, the location of Ethereum can be marked as Microsoft in the computer field.
3. Ethereum's valuation logic
Therefore, we will use 100 billion US dollars as the total market value of Ethereum. Ethereum is still in a state of constant issuance. However, the Ethereum community once discussed that the final total circulation of Ethereum may be set at 140 million. Now that the market value of Ethereum is about $17 billion, what is the current market value of Microsoft? Calculated on May 6, 2019, its market value is about 100 billion US dollars. Ethereum's current 17 billion pairs of Microsoft's $100 billion, this is an appreciation space logic of Ethereum.
However, it is still unknown how much Ethereum can occupy in this market, and it is a valuation in the case of a more rational market. When the market is in a bull or bear market, the price of Ethereum is likely to be significantly higher or lower than the normal valuation.
In the series of articles over the past few days, I have given valuation methods and valuations for Bitcoin and Ethereum. My original intention is to provide a more realistic valuation idea based on history and reality.
The price of Bitcoin and Ethereum is what the next bull market can rise. The real world is multi-dimensional and complex. We can only prepare a part in advance. There is data in my head, and I don’t panic in my heart.