I've been trying to wrap my mind around this problem. How would one be able to semi-accurately (I know it's impossible to accurately do this) find the intrinsic value of a crypto asset. The only thing I can come up with is its utility. Assets like bitcoin have the most basic utility of transferring perceived value from A to B not matter where A or B are via the internet, no middlemen involved, totally permissionless.

But then assets like ada must have more value than that because they can do the same transfer of value, faster and cheaper, and they are also required to access an ecosystem of dapps and virtually limitless applications.

How can we valuate such a token? Has anyone been able to come up with a formula that's somewhat objective?

  • 4
    It is not a cardano question, or even a cryptocurrency question, but actually a question about economics. It seems to me that the idea of an intrinsic value is baseless. Value, like beauty, is in the eye of people and not in the things themselves.
    – Distic
    Jun 3 at 12:22
  • Agreed, it's not specific to Cardano but it applies to it as much as to any other thing people consider valuable.
    – Mr. D
    Jun 3 at 17:12
  • Agreed, not a Cardano question but an economics question, voting to close it.
    – gRebel
    Jun 7 at 5:27
  • Personally I don't see a problem with us allowing questions that are not "directly" related to Cardano (most SE sites will allow tangentially related questions too), but the community seems to have decided on this one and I'm outnumbered. I recommend you consider asking this on Economics.SE or PersonalFInance.SE or one of the many other sites (first check if it's in scope and check for a "duplicate" question). Jun 8 at 15:35
  • Thanks, appreciate you trying anyway.
    – Mr. D
    Jun 9 at 6:53

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