Understanding the Fundamentals of the Industry The purpose of this article is to give other experts facing the challenge of completing a valuation of a Bitcoin mining facility some of the fundamental characteristics needed to understand the operations and assign value. A few months back I received a call from a potential client looking for a valuation of bitcoin mining company for purposes of a prenuptial agreement. I excitedly said “yes” I would love the engagement, very candidly telling the client that I had not valued one in the past but that I was part of an amazing organization, the…
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How Does it Work? Everyone seems to be talking about cryptocurrency these days, but many are unsure how to define it and fewer still, know exactly how it works. Cryptocurrency is a digital construct without physical substance; the only evidence of its existence is the digital record or ledger indicating balances held (like a balance sheet) and transactions that have occurred (like an income statement). What follows is a basic primer on how cryptocurrency works and how it differs from physical currencies. Everyone seems to be talking about cryptocurrency these days, but many are unsure how to define it and…