Bitcoin Valuation Reloaded

Overview: In this special edition of the Digital Investor, we have updated our bitcoin fair-value estimate. Due to institutional investors’ growing bitcoin adoption, the network’s size can no longer be measured accurately with the number addresses. A network of 50mio users seems plausible, implying a bitcoin fair value of USD 50,000. Our mining parity model shows that mining activities have moved in line with prices. We also show that mining activities for ETH and ETC decoupled from their prices when Ethereum 2.0 was launched on 1 December 2020.