Ross Gerber Points to SpaceX to Explain Why He Finds Bitcoin Price Predictions 'One of the Funnier Ideas'

Well-known investor Ross Gerber highlighted fundamental differences in how public stocks like Space Exploration Technologies Corp. (NASDAQ:SPCX) are valued compared with Bitcoin (CRYPTO: BTC).

‘Well-Worn Methods’ Available to Value Public Stocks

In an exclusive interview with Benzinga, Gerber said he finds Bitcoin price predictions “one of the funnier ideas,” questioning how anyone can set a target for an asset with no earnings or revenue.

Gerber, co-founder of investment firm Gerber Kawasaki, said that for a publicly listed company with a given level of revenue and profit, he can use “well-worn methods” to run a discounted cash flow analysis and arrive at a number.

Using SpaceX as an example, he said people can reasonably estimate the company’s valuation based on its earnings, the number of outstanding shares, the float, and other factors.

“Well, now it’s public. Now you know what SpaceX is worth, but all the shares aren’t floating yet. So in a year we’ll know what SpaceX is really worth,” he said. “But that’s even a process.”

Bitcoin Driven by Supply and Demand

Gerber said that Bitcoin is basically a matter of “supply and demand” for the most part, and fundamentals change only during its quadrennial halving event.