[Hilarium ICO Talk] Value Evaluation Model of Cryptocurrency 1

Hello Everyone, this is Chris Kim from the HILARIUM FOUNDATION. 

Today, I’m going to discuss the basics of the philosophy behind Hilarium Business model. 
What we are going to consider are the characteristics of the cryptocurrency and the value evaluation methods.
Various media have also been dealing with debates on the inherent value of cryptocurrency.

Normally, value evaluation is intended for securities or real assets  such as stocks, bonds and real estate. 
An inherent value usually  means the present value of future cash flows like dividends and interest. 
Thus, assets like stocks, real estate, bonds can be assessed for their intrinsic value.

An asset with an intrinsic value can objectively calculate the fair value of the asset before knowing the balancing point of demand and supply in the market.

On the other hand, products and currencies like crude oil and gold cannot be evaluated by the cash flow or intrinsic value; their values are only determined by the balancing point of supply and demand, which follows the market’s social valuation.

As most cryptocurrencies have more of product and currency characteristics, their values are determined by the balancing point of supply and demand, rather than by the cash flow or their intrinsic value.

While cryptocurrencies have some characteristics of securities, their values increase as the exchange value of the currency or the number of users increase with the development of ecosystem. 
This is a broader sense of value evaluation.
In other words, the ecosystem itself creates new value when it is socially used by many people and provides benefits to them.

With such philosophy of value creation in mind, Hilarium is preparing for ICO that can raise the true social value by using the reward platform.

We hope for a continuance of your interest.