So how would you go about it? Can you please share your structure?
How would you valuate Bitcoin?
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:
- 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
- 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)
- Economy and prices for alternatives (Gold, real estate, etc)
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