Schedule mock interviews on the Meeting Board, join the latest community discussions in our Consulting Q&A and find like-minded Interview Partners to connect and practice with!
Back to overview

How would you valuate Bitcoin?

So how would you go about it? Can you please share your structure? 

1
3.5k
14
Be the first to answer!
Nobody has responded to this question yet.
Top answer
Vlad
Coach
on Jun 08, 2018
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

Hi! 

Similar to other typical McKinsey price factors cases (factors influencing Oil Prices, Real Estate Prices, etc) you should approach it with the supply - demand framework:

Supply factors:

  • Volumes of bitcoins mined
  • Upper cap on the total number of bitcoins
  • Tech specifications of the system (Forks, etc)
  • R&D explored innovations - potential to increase the speed of bitcoin transactions to compete with Visa / Master Card
  • Speculation

Demand Factors:

  • Volume of transactions
  • Number of people holding bitcoins
  • Availability of exchanges
  • Bitcoin adoption by payment systems, banks, sellers
  • Availability of alternative coins (Ripple, Bitcoin cash, etc)
  • Regulation (Taxation, restrictions, etc)
  • Speculation
  • Economy and prices for alternatives (Gold, real estate, etc)

Best!

Similar Questions
Consulting
M&A Case Company Valuation
on Nov 14, 2022
Global
5
2.7k
Top answer by
#1 Coach for Sessions (4.500+) | 1.500+ 5-Star Reviews | Proven Success: ➡ interviewoffers.com | Ex BCG | 10Y+ Coaching
44
5 Answers
2.7k Views
+2
Consulting
EY MENA Case Studies in Valuation, Modelling and Economics
on Jul 31, 2023
Global
4
2.7k
Top answer by
Andi
Coach
BCG 1st & Final Round interviewer | Personalized prep with >95% success rate | 7yrs coaching | Experienced Hires
44
4 Answers
2.7k Views
+1
Consulting
Case Study Based on CIM
on Jun 11, 2024
Global
4
2.2k
Top answer by
Sanjeev
Coach
PwC/Strategy&/GT/Chicago Booth - 2nd Session Complementary till June 1st
48
4 Answers
2.2k Views
+1