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Well-known investor Ross Gerberhighlighted fundamental differences in how public stocks likeSpace Exploration Technologies Corp.(NASDAQ:SPCX) are valued compared with <a href="https://xpertsstudio.com/remixpoint-goes-all-in-on-bitcoin-after-5-54-million-altcoin-sale/” title=”Remixpoint Goes All-In on Bitcoin After $5.54 Million Altcoin Sale”>Bitcoin(CRYPTO: BTC).
‘Well-Worn Methods’ Available to Value Public Stocks
In an exclusive interview with Benzinga, Gerber said he finds Bitcoin price predictions “one of the funnier ideas,” questioning how anyone can set a target for an asset with no earnings or revenue.
Gerber, co-founder of investment firm Gerber Kawasaki, said that for a publicly listed company with a given level of revenue and profit, he can use “well-worn methods” to run a discounted cash flow analysis and arrive at a number.
Using SpaceX as an example, he said people can reasonably estimate the company’s valuation based on its earnings, the number of outstanding shares, the float, and other factors.
“Well, now it’s public. Now you know what SpaceX is worth, but all the shares aren’t floating yet. So in a year we’ll know what SpaceX is really worth,” he said. “But that’s even a process.”
Bitcoin Driven by Supply and Demand
Gerber said that Bitcoin is basically a matter of “supply and demand” for the most part, and fundamentals change only during its quadrennial halving event.
So, when the halving happens, the fundamentals change, which means half as many BTC will be printed every day,” he argued. “Theoretically, that action creates less supply of BTC, and prices then have to go higher if demand stays the same.”
Gerber said he’s not thinking much about Bitcoin for at least another year, and would start buying more once the next halving—scheduled for April 2028—comes around.
Gerber Remains a HODLer
Gerber disclosed that he has been investing in Bitcoin since 2014 and has not sold any of his holdings to date.
“I’m sort of like the old school hold on to dear life [HODL] kind of investor. So, I just don’t plan on ever really selling my Bitcoin,” he added.
Price Action: At the time of writing, BTC was exchanging hands at $77,727, up 0.33% in the last 24 hours, according to data from Benzinga Pro.
SpaceX fell 0.14% in after-hours trading. The stock closed 1.07% lower at $140.71 during Wednesday’s regular trading session.
Benzinga’s Edge Stock Rankings indicate SPCXhas a stronger price trend over short, medium, and long timeframes.
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Source: www.benzinga.com