arXiv · 1802.01176
Valuation of Crypto-Currency Mining Operations
Abstract
Traditionally, the Net Present Value method is used to compare diverging investment strategies. However, valuating crypto-projects with fiat-based currency is confusing due to extreme coin appreciation rates as compared to fiat interest rates. Here, we provide a net present value method based on using crypto-coin as the underlying asset. Using this method, we compare HODL vs. mining, we also provide a sensitivity analysis of profitability
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J. Berengueres. 2018-02-04. Valuation of Crypto-Currency Mining Operations. https://arxiv.org/abs/1802.01176
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