43 sats \ 0 replies \ @Undisciplined 9h \ on: Bitcoin Economics And Finance Survey bitcoin
Evans (2014) refers to Bitcoin and other digital currencies as a long-lived asset of which the value at any point in time reflects its expectations about the future value and a change in this expectation can change the value further.
The study also claims that even though Bitcoin appears as highly volatile in the short-run, it will stabilize over a longer period of time.
That first chunk is really important and was the motivation for my post Reflections from the Nakamoto Simulator. The time to adoption, as well as the ultimate share of adoption, make a huge difference in present discounted value of bitcoin. I concluded that the current price should be roughly $1M, but someone who thinks adoption will be half as fast will come up with a much lower estimate.
The second chunk is a recurring conclusion that many authors reached and it is what we've seen with additional years of observation.
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