2026-01-09 22:54:52

Recently jumped into a discussion about Bitcoin valuations. Someone brought up the Discounted Cash Flow model—you know, the traditional DCF approach that everyone in finance treats like gospel.

Here's the thing though. John Williams formalized DCF back in 1938 with his book The Theory of Investment Value. That framework has dominated valuation thinking for nearly a century. And honestly? It's showing its age.

These conventional models just don't work well for Bitcoin. They assume stable cash flows, predictable earnings, mature market dynamics—none of which apply to what we're dealing with here. We're still in the earliest innings of this ecosystem.

Bitcoin doesn't fit the traditional valuation box. That's not a flaw—it's a feature of where we actually are in the cycle.

BTC0,08%

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

15 Likes

Reward
15
8
Repost
Share

Comment

0/400

CounterIndicator

· 4h ago

The old framework from 1938 really tries to fit Bitcoin into it—it's like trying to draw water with a spoon, hilarious. 2. The DCF method is completely useless for BTC; traditional finance folks are still just talking about it on paper. 3. Forcing early ecosystems to use mature market models is like looking at the solar system through a microscope—ridiculous. 4. Using unstable cash flows with DCF? No wonder they can never keep up. 5. The earliest concepts can't validate old theories in the first place—that's the rational approach.

View OriginalReply0

RebaseVictim

· 22h ago

That outdated DCF method is really laughable when applied to BTC... Still using a framework from 1938, humans have already entered Web3, and it's still dreaming.

View OriginalReply0

TheMemefather

· 01-09 23:22

That DCF thing is just shoehorning BTC; someone should have pointed it out long ago. Do we have to wait until now?

View OriginalReply0

DustCollector

· 01-09 23:12

Does the 1938 theory really apply to Bitcoin? Wake up, this isn't a traditional asset, buddy. People using the DCF framework to value BTC really haven't thought that these are two completely different things... Serious financial professionals using tools from the last century to measure, in other words, just forcing a square peg into a round hole. BTC is still in its infancy. Talking about stable cash flows—are these people serious? Where does the mature market come from? Those who rigidly apply models just don't understand the game rules. Honestly, traditional financial tools were never designed for this kind of thing, so don't blame the tools.

View OriginalReply0

GateUser-ccc36bc5

· 01-09 23:12

Haha, the DCF method has been outdated for a long time. Does anyone still use something from 1938 to value Bitcoin? That's hilarious.

View OriginalReply0

ForeverBuyingDips

· 01-09 23:11

The DCF method is indeed outdated. Using it to value Bitcoin is like wearing leather shoes to climb a snow mountain... Those who still rely on traditional financial frameworks haven't really figured it out yet.

View OriginalReply0

0xSunnyDay

· 01-09 23:00

DCF is outdated, forcing it onto Bitcoin is just fitting a square peg in a round hole. What stable cash flow did the early ecosystem use? It's hilarious.

View OriginalReply0

SocialFiQueen

· 01-09 22:57

Haha, using that old and outdated DCF method to value Bitcoin is just ridiculous, and acting like it's a treasure.

View OriginalReply0