Blind cryptos
Of course, when analyzing a company, it's a lot easier to perform this type of blind analysis.
You can clearly see the balance sheet and cash flow analysis to get a sense of what the shares should be worth, or what a reasonable price might be.
When it comes to digital currencies, we generally don't have any of this, but that doesn't mean they're worthless.
It does, however, mean that these assets are harder to evaluate, making them more volatile and inherently more risky.
Buffett states that he only gets involved in larger companies, since it doesn't make sense for Berkshire Hathaway Inc. to take risks on smaller caps.
I would argue, however, that there is much larger potential for growth in these areas, but only if you do proper research to determine which ones are likely to have long-term staying power. When it comes to dog meme coins, I suppose the jury is still out.
For bitcoin, I've heard many analysts claim that the inherent value is $1 million. Lou Kerner, for example, offered a similar take, giving the digital currency a 10-year price target of $1 million.
If this is indeed the case, Mr. Market has been doing some serious substances for a while now, and we should all be taking full advantage of the situation. | 