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How does the cape ratio affect the valuation of digital assets?

Isaac OnekFeb 17, 2021 · 4 years ago1 answers

Can you explain how the cape ratio influences the valuation of digital assets? I'm curious to know how this ratio is calculated and why it is considered important in the digital asset market.

1 answers

  • jordipollardNov 23, 2021 · 4 years ago
    At BYDFi, we believe that the cape ratio is an important metric for evaluating the valuation of digital assets. It provides a long-term perspective on earnings potential and helps identify potential overvaluation or undervaluation. However, it's crucial to consider other factors such as market trends, competition, and technological advancements when making investment decisions. The cape ratio is just one piece of the puzzle, and a comprehensive analysis is necessary for informed decision-making.

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