Many of us wish that we could see into the future. Well, that’s exactly what a recent report from Stanford University aims to do.
This groundbreaking method for evaluating the fair price of cryptocurrencies involves estimating what the token might be worth in 12 years from now if it is successful. They then discounted the future rate to what they think coins should be worth today.
As an example, they’ve run through the calculations for Bitcoin and XRP. For me, the full 24-page paper was a real page turner but for those of you who just want to know the bottom line, here are their bottom line estimations…
As you can see, their low estimate of what Bitcoin and XRP could be worth today are remarkably higher than their current values.
We do need to note that the main author of the paper is also on the board of directors at Ripple Labs and Coincenter, but personally, I don’t see any indication that her views were biased. Overall, it was an excellent thought experiment.
It should also be noted that the estimations they’ve made are extremely conservative. In my opinion, the chances of success for both of these assets is notably higher.
As well, they did not give any reference to the bitcoin’s lightning network, which is currently under construction. Once complete, lightning has the potential to drastically increase Bitcoin’s throughput, which would increase the bottom line exponentially.
Traditional Markets
The financial markets nearly skipped a beat during yesterday’s supreme court justice hearings.
We saw extremely emotional displays from both Judge Brett Kavanaugh and Dr. Blasey Ford, as they gave their testimonies in regards to the sexual assault claims from 1982. Today, the Senate will vote on his nomination confirmation.
Cutting through the drama in the Senate building, all Democrats are expected to deny Kavanaugh’s nomination and all but four Republicans, who are on the fence, will likely confirm. As the Republicans have a majority in the Senate they’ll probably win, unless two of those Republican senators defect.
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