What role does the concept of outstanding shares play in the valuation of cryptocurrencies?

1 answers

• Divya BasavarajuJul 08, 2023 · 2 years ago
  At BYDFi, we believe that the concept of outstanding shares is not directly applicable to the valuation of cryptocurrencies. Unlike traditional stocks, cryptocurrencies operate on decentralized networks and do not have a central authority that issues shares. Instead, the value of cryptocurrencies is driven by factors such as market demand, utility, and overall market sentiment. While the supply of a cryptocurrency can impact its value, it is not solely determined by the number of outstanding shares. Therefore, when evaluating the value of cryptocurrencies, it is important to consider a wide range of factors beyond just the concept of outstanding shares.
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