It provides two unique fresh sets of findings in general. To begin, it gives data to support the idea that the values of the five most major mineable cryptocurrencies are, in the long term, exactly proportional to the respective networks' processing power (also known as hash rate) (i.e., number of users). Second, it establishes risk variables relating to aggregate processing power and aggregate network values and shows how these factors may be utilised to price the returns of various cryptocurrencies. The findings have a number of implications for the ongoing bitcoin debate.
To begin with, it illustrates that the long-term prices of major cryptocurrencies are established in reality since they are based on fundamentals. This is demonstrated by demonstrating that these prices are based on fundamentals. Other key considerations, including as governmental oversight and political risk, may become more essential as the bitcoin economy evolves. Regardless, the study is a first step toward a deeper understanding of the elements that influence cryptocurrency values.