So how would you go about it? Can you please share your structure?
How would you valuate Bitcoin?
Overview of answers
Upvotes
Best answer
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!
Was this answer helpful?
Related Cases
Company case by EY-Parthenon
Topics:
Der Geschäftsführer eines in Deutschland führenden Telekommunikationsanbieters denkt über einen Einstieg in den SVoD (Subscription-Video-on-Demand)-Markt nach. Bevor er jedoch viel Zeit in die detaillierte Marktanalyse steckt, möchte er erstmal das Geschäftsmodell von Onflix, dem derzeit internation
... (Open whole case)
14.6k
Times solved
Intermediate
Difficulty
Topics:
Your client, Gravestone Inc., is a mason producing gravestones situated in Switzerland. He is producing high-quality, hand-crafted gravestones with very skilled labour-force.In the recent past a technology was developed that would allow him to produce his gravestones with much less labour.He is cont
... (Open whole case)
13.5k
Times solved
Intermediate
Difficulty
Expert case by Antonello
Style:
Topics:
A wealthy client has recently bought an island in the Caribbean. She has engaged us to identify possible uses for her new island.
... (Open whole case)
13.4k
Times solved
Intermediate
Difficulty
Dein Klient ist ein spezialisierter Lösungsanbieter für komplexe Leichtbaugruppen aus Metall für die Automobil-, Luft- und Raumfahrtindustrie.Im vergangenen Jahr wurde erstmals ein negatives Betriebsergebnis erwirtschaftet. Die Geschäftsführung beauftragt Dich, ein realistisches Zielbild für Phoenix
... (Open whole case)
9.8k
Times solved
Intermediate
Difficulty
Expert case by Xabi
Topics:
The client is CarRentalCo, a global car rental company present on the European and North American markets. In Europe, it is present in most EU countries but has not yet entered the Baltic countries. CarRentalCo has asked us to determine whether or not they should enter the Baltic (Estonia, Latv
... (Open whole case)
9.1k
Times solved
Intermediate
Difficulty
426
Meetings
11,813
Q&A Upvotes
127
Awards
186 Reviews
