Intrinsic Value

The intrinsic value of an asset represents the actual value of the asset regardless of the current value. The intrinsic value is often calculated via a complex financial mechanism. The current value of an asset represents the perceived value, based on the marketplace.

The intrinsic value is closely connected with the underlying valuation of the company/enterprise issuing the given asset. Some of the determining factors include the cash flow of the company along with its projected earnings.

Similarly, cryptocurrencies also have an intrinsic value that may be higher than their current value. This is a clear indication that the currency would boom in the coming future. So always try to acquire sufficient research and preparation prior to investing in a new token altogether.