QOTD: When Valuation Attempts are Silly

After all, true investing requires a rational appraisal of an asset’s value and that is simply not possible at present with Bitcoin. Real understanding of the economic issues underlying the cryptocurrency is almost nonexistent.

It is not just that very few people really comprehend the technology behind Bitcoin. It is that no one can attach objective probabilities to the various possible outcomes of the current Bitcoin enthusiasm.

How can we even start estimating the fundamental value of Bitcoin, with its astonishing market value of more than $275 billion? Any attempt will soon sound silly.

- Professor Robert J. Shiller