How Do You Value Anything?
How Do You Value Anything?
How do you value anything? Well, it's a loaded question because the value of something is what you're welling to pay. Talking about subjective ideas is difficult because often times the person on the other side either doesn't understand the point you're trying to make, or they may have their own interpretation of how things work.
Just imagine how you feel when you finally figure out a math problem, sometimes that is the same breakthrough when you finally understand valuation. When true value is identified at mass scale, we can call this FOMO, then with FOMO, also comes a market of interest we can't fathom because most people don't swing the amount of money hedge funds do.
As a result of hedge fund manipulation of markets, valuation can be very confusing and things that have tangible value seem intrinsic because with technology. Tangibility is becoming more subjective since many don't understand a how digital ecosystems can be leveraged.
Big Tech Valuation
When valuation is miscalculated it often time leads to false narratives. E.g. just take a look at the dot com boom in the 90s. Most people at the time were saying most internet companies are a scam, but you know what companies started during that boom? Amazon and Apple, need I say more?
The idea that something like Hive is a scam can sometimes annoy me, because it suggests that people don't understand that everything is susceptible to being a scam. More importantly if you call anything related to blockchain a scam because it's blockchain, you don't know your history.
How I Value Blockchain Projects
To relate with my Hive friends, the way I value blockchain projects is honestly about the same way I value Hive projects. It's kind of interesting how many active members of Hive are primarily interested in only Hive backed projects, I don't mind it because I have a lot of interest in Hive, but I tend to have little real interest in other Hive projects (if I'm being honest). Why do you value any Hive tribe though?
For me, it's because of the value that you bring along with what that tribe may provide you. Your interest creates value among everything else, and that allows you to buy more of the project's coin.
This is the idea of a whole economy playing out, even games like dCity has tapped into, by the way if you can't tell, I love to use dCity as a reference too. Probably because it's an economic game more than it is an actual game. At its core, it's a game of timing market interest, which I guess you could say is a ponzi, but you can say that about anything that can be replaced, i.e. most internet companies.
So then, real value in internet companies should be based on sustainability. This is the argument I made in my previous post which I discussed why it's imperative for hive to come up with a better value model that focuses more on checks and balances.
How Will you Invest?
How will you base your next investment? Will you buy Tesla stock valued higher than GM ever was without the same results? It's risky, but do you like to speculate? Do you want to be part of the next big thing? Trust your gut and don't consider anything but the vested interest you have. That interest will guide the due diligence you should perform prior to making any investment.
Sources
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