Ruminations on the Objective Value of ETH

C

chasinfla

What is it worth, really? How to begin to parse the components of its value out.

Chasinfla is resurrecting this discussion. If you do not think it applies, then you are cordially invited to ignore it.

Someone brought up the idea of a "no-arbitrage" model. So, would that mean measuring the cost of constructing a portfolio of alternative assets to mimic ETH? Can it be done without cryptos, in order to not be circular?

Etc.
 
Looking pretty good atm.
 

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You have to realize 2 things:

1. There is NO objective value for any crypto. That thing just doesn't exist. But even if it did, who cares if it is $5 or $5K, if the REAL value is half way in between?

2. Established cryptos move together and they also move with the general market. So even if there was an objective value (and there is not), the general market forces override the need to tend toward an objective value.

As an extra, cryptos are still in FOMO mode so let's say the objective value of ETH was $5, shorting it may not do any good for you.

So as an advice, you should ruminate about the meaning of life or the limits of human stupidity, but not the objective something of anything crypto related.
 
chasinfla said:
Please, by all means, demonstrate this.
More...

Proving a negative? Nice. Why don't you prove the positive that there is an objective value?

By the way, the point of the post was that it is irrelevant, exists or not. So why debate an irrelevant issue? You can just forget about it, Mr. Low Hanging Fruit. :)

The teacher in me has to give you guys a non-crypto example, so you may learn something:

Let's say Tesla stock's objective value is $25. How is that relevant in any way, when the stock is around 775? What can you do with such an info? Nothing...
 
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What is it worth, really? How to begin to parse the components of its value out.
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Tuff question. We know that DeFi is here to stay and continues to build at unprecedented rates.

One saying is that we are still early, therefore buy up lots of ETH.

HOWEVER, this implies that the expected value of ETH is to go UP in value, kinda like how most people in the real world grow up to believe about basic commodities. But... as roll-ups continue to get better, and we move closer and closer to sharding and staking, etc. can we be so sure the value will go UP instead of down? We can talk all about the 'burning' but in the end, who really knows for sure the way things change so rapidly. Just because a CEO issues buy-backs, doesn't mean over-all shareholder value is going up. It's more complicated than that.

Even though it is still EARLY to join DeFi, what if the true value of ETH in the long run is something like $20. That means it really was a tulip-bubble at $4300, despite it has utility use.

People still buy tulips today after all.
 
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