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Professor Coin: How Do You Price Cryptocurrencies Like Bitcoin and Ethereum?

This article discusses various academic studies on how to price cryptocurrencies. It mentions that traditional pricing models used in equity markets, such as the Fama-French factors, can also be applied to cryptocurrencies. The article highlights the importance of factors such as market return, size, momentum, computing power, and network size in explaining cryptocurrency returns. It also mentions a recent study that creates 13 factors based on on-chain data from different blockchains, which shows that a simple model including market returns and network distribution can explain cryptocurrency returns. Overall, the article suggests that while cryptocurrencies may have unique characteristics, there is value in using blockchain data to predict their future value.

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