- Bullish case: price will appreciate indefinitely due to capped supply & ever-growing demand.
- Bearish case: price will fall to zero, as it's an intrinsically worthless.
=> price likely to remain between extremes.
"There are no fundamental economic factors determining the exchange rate between two intrinsically worthless objects. Something similar holds true for Bitcoin and Altcoin."
- Many securities trade above fundamentals.
- Gold trades above its value as measured by its industrial applications.
- The USD trades above its fundamental value in discharging tax obligations.