How to obtain the fair value for cryptocurrency and digital assets Online publication date: Thu, 19-May-2022
by Nipun Agarwal
International Journal of Blockchains and Cryptocurrencies (IJBC), Vol. 3, No. 1, 2022
Abstract: Digital asset prices have been highly volatile, and it is hard to understand their fair value as you would with traditional assets. There has been some research to consider how cryptocurrencies and digital assets can be valued. However, there are no mainstream valuation theories that have still been developed. This paper undertakes a survey of some of the methods utilised to perform this valuation in practice at present. Though, as cryptocurrencies have a significant technology component, as a result, the existing valuation models being used in the industry are different to the traditional valuation models. This paper intends to review traditional asset valuation models like the CAPM and APT. When reviewing industry-based models that are used to value digital assets, we notice that neither of these models provides a simplistic way of analysing the fair value of digital assets. Therefore, this paper develops the volatility-based digital asset model to show how traditional and digital assets can be valued using a standard model.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Blockchains and Cryptocurrencies (IJBC):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook