From the course: AI in Fintech Essential Training

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What is a cryptocurrency worth?

What is a cryptocurrency worth?

From the course: AI in Fintech Essential Training

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What is a cryptocurrency worth?

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- [Instructor] One of the big problems with cryptocurrencies is that nobody really knows what they should be worth. When we think about traditional currencies like the US dollar, it's pretty straightforward, right? We have a market, we have supply and demand that dictates the exchange rate between say the US dollar and the British pound. So one dollar might be worth .66 British pounds as an example. Well, we don't have to ask what the value of a dollar is in the US. Everyone knows, one dollar is worth one dollar. You set the price of products appropriately. The exchange rate dictates international values. We think about cryptocurrencies, this problem is considerably more complicated. I'm in the 04_02_Begin Excel file. Now, this file is simply a financial model that I created a few years ago on a consulting assignment with a hedge fund and the goal was to get some sense for what the value of, perhaps the most…

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