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📺 Fat Protocol Video 👉 https://www.youtube.com/watch?v=R5VEDVj0oJw
📺 Ethereum 2.0 Potential 👉 https://www.youtube.com/watch?v=8HHdrmA4sEU


0:00 Intro
2:00 Which is more volatile?
4:59 Tesla Overvalued?
7:16 Earnings Growth Potential
11:23 Bitcoin Investment Cases
15:00 Inflation Hedge
17:28 Value of Ethereum
20:05 Conclusion


⛓️ 🔗 Useful Links 🔗 ⛓️

► Accounting Ratios: https://www.investorsunderground.com/stock-market-fundamentals/accounting-ratios/
► Stock to Flow Model: https://medium.com/@100trillionUSD/modeling-bitcoins-value-with-scarcity-91fa0fc03e25
► Fat Protocol: https://medium.com/@100trillionUSD/modeling-bitcoins-value-with-scarcity-91fa0fc03e25
► Automotive Multiple: https://www.macrotrends.net/stocks/charts/GPI/group-1-automotive/pe-ratio
► Etheruem 2.0 Staking Rewards: https://www.stakingrewards.com/earn/ethereum-2-0


😱 More Volatile? 😱

Over the past 30 days, the rolling volatility on Tesla stock has been about 70%. By contrast, the 30 day realised volatility on Bitcoin is only at 28%.

Taking a look at forward looking volatility through option implied vol, TSLA is over 104% whereas Bitcoin is only about 50%. Tesla is a much riskier asset to hold than Bitcoin. Not only on a basis of historical performance but also based on what volatility is expected.

🤔 Tesla Overvalued? 🤔

At Tesla, based on expected adjusted EPS for 2020 of $4.43, the Forward PE ratio is over 339 times. Other cars only have 6.87x

Some people may counter that Price-to-Earnings is not the best multiple to use for this. They claim that Price-to-sales is a better measure as Tesla is more of a “tech” company.

Based on an estimated sales projection, Tesla has a forward price to sales ratio of about 10.2 times. Amazon has a 4.3 times price to sales ratio. Google has a 6.9 ratio.

📈 Tesla Growth Realistic? 📈

Hybrid Vehicles are much cheaper than BEVs and could provide a cost-effective way for people to buy an environmentally sustainable car. Or even if people were dead set on getting a BEV, could they not opt for a cheaper car.

Economies of scale at the gigafactories could come but this is assuming that Tesla can replicate the Shanghai gigafactory in countries such as Germany. In Germany there are strong trade unions which could increase prices

There is also concerns about the long term macroeconomic impact that could come from a second wave of Covid 19. If this were the case then people could be less likely to buy a BEV. Finally, you also have to consider that government subsidies will not be as generous given the amount of money to fight covid.

💸 Bitcoin Potential 💸

Bitcoin is a rare asset that has a supply limited to 21 million BTC. This means that like a commodity, there is very little of it to go around. You can value price projections of Bitcoin based on the stock to flow model.

It looks at a ratio of how much Bitcoin is hitting the market (flow) and the current outstanding bitcoin (stock).

The S2F value for Bitcoin is increasing as it goes through its halving stages and the flow of new bitcoin hitting the exchange drops.

Bitcoin also has an added benefit in that it can be seen as an inflation hedge. As governments spend more money, this money is likely to flood the market and lead to higher prices. This includes stock prices like Tesla. However, Bitcoin is limited in supply and hence cannot have it’s purchasing power eroded.

💸 Ethereum Potential 💸

Ethereum is valuable according to the “Fat Protocol” theory. ETH is valuable because the more that the network is used, the more demand that there is for the cryptocurrency that powers said network.

A lot of this value is driven by that explosive growth in DeFi which means a whole lot of use on the protocol. You also have the upcoming launch of Ethereum 2.0 which will introduce staking and mean a regular return on ETH holdings (better than stocks that don’t pay dividends).

Staking is only one component of Etheruem 2.0. When it launches you will also have effeminacy improvements which could make it alot more usable and hence increase its value according to the Fat protocol theory.


📜 Disclaimer 📜

The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading Forex, cryptocurrencies and CFDs poses considerable risk of loss. The speaker does not guarantee any particular outcome.

#Tesla #Bitcoin #btc #crypto #stocks #tsla #wallstreet #trading


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