Is there a standard mechanism for valuing illiquid assets like Steem Power based on some type of sane risk analysis given volatility over time? I tried google searching but only came up with a bunch of PDFs which made my eyes gloss over.
@pharesim you need to factor in the fact that Steem Power is not very liquid since it takes 2 years to fully convert it to Steem (by way of powering down). I am not sure how to represent this correctly in a mathematical formula.
Is there a standard mechanism for valuing illiquid assets like Steem Power based on some type of sane risk analysis given volatility over time? I tried google searching but only came up with a bunch of PDFs which made my eyes gloss over.
@pharesim you need to factor in the fact that Steem Power is not very liquid since it takes 2 years to fully convert it to Steem (by way of powering down). I am not sure how to represent this correctly in a mathematical formula.