Skip to main content

How Is the Concept of Intrinsic Value Similar to the Net Profit from a Successful Block Reward?

Intrinsic value is similar to the net profit from a successful block reward in that both represent an immediate, tangible financial gain. Intrinsic value is the immediate profit if the option is exercised.

Net profit from a block reward is the total reward (subsidy + fees) minus the operational costs (electricity, pool fees). Both are measures of current, realized value: the option's value relative to the strike, and the block's value relative to the cost of mining.

Explain the Concept of ‘Real Yield’ in a High-Inflation Staking Environment
What Are the Economic Costs for a Successful 51 Percent Attack on a Major Cryptocurrency?
How Does PoW’s Energy Consumption Compare to the Costs of Operating a Traditional Financial Clearinghouse?
Define “Maximum Loss” and “Maximum Gain” for a Short Put Option