Dilshad OmarDec 27, 2021 · 3 years ago5 answers Can the average WACC be used to predict the future performance of cryptocurrencies?
Is it possible to use the average weighted average cost of capital (WACC) as a reliable indicator to predict the future performance of cryptocurrencies? Can the WACC, which is commonly used in traditional finance to evaluate investment opportunities, be applied to the volatile and decentralized nature of cryptocurrencies? How does the WACC factor in the unique characteristics of cryptocurrencies, such as their high volatility, lack of regulation, and speculative nature? Are there any limitations or challenges in using the average WACC to forecast the future performance of cryptocurrencies?