Traditional finance values assets differently than crypto. In TradFi, the valuation anchors rely on three pillars: expected future cash flows, risk-adjusted discount rates applied to those flows, and the legal/contractual guarantees backing everything. This fundamental difference shapes how value gets determined in each system.
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.
9 Likes
Reward
9
4
Repost
Share
Comment
0/400
CascadingDipBuyer
· 18h ago
The traditional cash flow discount model is really dead in crypto, and contract guarantees are even more nonsense... The crypto world is just a confidence game, bro.
View OriginalReply0
MEVHunter
· 18h ago
lmao "legal guarantees" - yeah tell that to the next bank run victim. meanwhile crypto's literally playing 4d chess with naked valuations, no intermediaries trying to skim the spread. cash flows? more like cash *traps* designed to keep retail dumb & poor.
Reply0
DegenTherapist
· 18h ago
In simple terms, traditional finance has legal backing, while crypto relies entirely on faith and narrative. That's the biggest difference, isn't it?
View OriginalReply0
ThreeHornBlasts
· 18h ago
Wait a minute, the traditional financial logic doesn't work at all in crypto. No wonder people keep getting cut off.
Traditional finance values assets differently than crypto. In TradFi, the valuation anchors rely on three pillars: expected future cash flows, risk-adjusted discount rates applied to those flows, and the legal/contractual guarantees backing everything. This fundamental difference shapes how value gets determined in each system.