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The Washington Independent
Ethereum's market value has surpassed Coca-Cola, Berkshire Hathaway, and Roche since peaking over $300 billion this week

Ethereum's market value has surpassed Coca-Cola, Berkshire Hathaway, and Roche since peaking over $300 billion this week

May 03, 2021 | Frazer Pugh
crypto

The price of ETH, which has risen more than 200% in the last year, has contributed to making the market cap above $337 billion. This highly valuable statistic brought the market cap of Procter & Gamble's and PayPal ($308 billion) to that of all other big corporations.

An ICO's market cap value is calculated regardless of when the coin has been traded, regardless of price fluctuations, by multiplying the most recent trading price by the existing supply at the time of the launch. For these reasons, it is far removed from the norm for investors to pay more than the average amount.

For investors in conventional finance, multiples and valuations are used to determine 'worth.' It is mostly done by earnings, profits, and market share formula; trying to do so in different use cases increases market volatility and can be avoided.

There is currently no accurate method of determining how much value the currency has, or how much longer it has left to rise, to where it may climb. The use of a cryptocurrency could serve as both a long-term store of value and as well as a medium of exchange while it also being used to fuel the Ethereum network.

To put it another way, we could look at the impact of exchanges on various asset groups. Traded options are attractive to financial investors because they allow them to take a gamble on the asset's price movements. It must be taken into consideration.

While one might argue on the merits of comparing the market capitalization of various asset classes, the method functions in about the same way.

According to figures supplied by I.M. Capital, Ether is trading at levels equal to Nestle, P.G.G., and PayPal, but is also climbing, as well as Roche and Procter & Gamble.

Bass Strait Foods was founded in 1837 and has a wide-based line of diverse brands, including personal health, treatment, and grooming products. with a worldwide workforce of one hundred thousand workers, the firm produced over $13 billion in revenue in the same year

On the other hand, Ethereum has an electric capital developer report which shows that claims there are 2,320 developers working monthly on the project every month. While it is not a religious enterprise, it maintains regular use of over 100,000 decentralized applications (dApps). Just more so is the 12 billion dollars worth of transfers and deposits that Ethereum carries out every day. The market capitalization of the business is impressive in itself, even for an S&P 500 firm.

Comparing an organization that is manufacturing- and distribution-oriented to a technology-dependent operation is a futile attempt. In contrast, stock owners receive all of the benefits of distributions, but there are additional risks associated with staking Ether.

Ether 2.0 investors can either become a validator or participate in a pool, and risk their investment but often forfeit their coins because of fraudulent behavior on the network. Centralized services and decentralized protocols have similar risks when lending Ether.

For example, listed firms can be able to issue additional securities if the market gives them a grossly inflated value or is flooded by investor money.

A few other threats that stockholders can encounter include tax reforms, operational issues, and regulatory requirements. For example, as seen in federal court documents, Roche was facing a lawsuit for deceiving the CDC for $4.5 billion in September 2019, one of their own scientists.

The degree of danger that is associated with "decentralized" protocols, at least in terms of financial risks, should explain their elevated prices.

That is, if investors understood the dangers listed above, they would perhaps assume that Ether is less risky than stocks. You will get the assets staked if they are independent of third parties and independent of third-party purchases.

This is also the author's own viewpoint, which doesn't actually follow into real life. Any financial decision comes with risk. If you make a decision based on other people's research, you'll just make an uninformed choice.

Frazer Pugh | I work in the investment management sector as a professional. Previously, I advised top financial services companies on balance sheet management, portfolio planning, and valuations as a consultant. I am currently pursuing a part-time MBA at Melbourne University, where I am a lecturer in accounting and hedge fund strategies, as well as a mentor/coach in a part-time equity analysis initiative. I have a bachelor's degree in economics, a master's degree in finance, and am a Chartered Accountant. I enjoy instructing and assisting others in achieving their objectives.

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