Why Is a Zero or Near-Zero Growth Rate Often Preferred for Crypto Terminal Value?
A zero or near-zero growth rate is preferred for crypto terminal value due to the inherent uncertainty and high risk of technology obsolescence in the sector. It is a conservative assumption that mitigates the risk of overvaluation from overly optimistic perpetual growth projections.
This approach acknowledges that while the network may survive, its market share or revenue growth may eventually plateau or decline due to competition or technological shifts.