Why Ethereum Is Valued Similar To MasterCard And Visa?

Ethereum has been news for its DApps platform and its fluctuating value. However, now it is overvalued based on its P/S multiple of 50 along with a comparison with Visa. Why is this necessary?

The fact to justify the latest prices needs transaction to grow 17 fold. Almost everyone has experienced a recent slump in the Ethereum price: ETH-USD along with other cryptocurrencies. According to traditional finance, the value of stocks, as well as other financial instruments, precisely depends on traditional valuation models.

However, considering digital assets this becomes much more complex. Does next thing come that is there any necessity to value the cryptocurrency like gold? Let’s evaluate Ethereum by analyzing the company with actual cash models. Furthermore, the cryptocurrency ETH has valued the same as Visa, basically a transaction network company.

Ethereum Compared With Visa or MasterCard

ETH offers its network to freely perform transactions using blockchain. A blockchain, on the other hand, ensures clients to maintain a big record-keeping system. Other than this one benefit, blockchain on Ethereum benefits user:

Immutability of transactions

While using the blockchain for records & transactions are hard to modify one transaction is accomplished. In case to double spend an individual digital asset, people trust blockchain in record-keeping system.

Decentralized validation

On blockchain, every single transaction gets validated by miners. Moreover, miners are the individuals who are responsible to validate the transactions done on blockchain in return receive a reward for validating.

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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