Ethereum and Perpetuity: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Add links.)
 
imported>P.F.cowdell@shu.ac.uk
m (Categorise the page)
 
Line 1: Line 1:
''Blockchain - crypto-assets.''
1.


Ethereum is the platform that hosts the digital currency ether.
A perpetuity is similar to an annuity except that the fixed periodic cash flow which starts at the future Time 1 period hence then carries on for ever (‘in perpetuity’) rather than stopping after Time n.  


Ethereum was established in 2015 and it is the second largest platform after bitcoin.
The present value of a fixed perpetuity is calculated - assuming a constant periodic cost of capital (r) for all periods from now to infinity - as:
 
Present Value = A<sub>1</sub> x 1/r
 
 
2.
 
For a growing perpetuity the present value formula is modified to take account of the constant periodic growth rate from Time 1 period hence to infinity as:
 
Present Value = A<sub>1</sub> x 1/[r-g]
 
where g = the periodic rate of growth of the cash flow.
 
The growing perpetuity concept is applied by the Dividend growth model for share valuation.




== See also ==
== See also ==
* [[Altcoin]]
* [[Annuity]]
* [[Bitcoin]]
* [[Dividend growth model]]
* [[Blockchain]]
* [[Growing perpetuity]]
* [[Blockchain Governance Initiative Network]] (BGIN)
* [[Perpetuity due]]
* [[Cardano]]
* [[Perpetuity factor]]
* [[Centralised finance]]
* [[Simple annuity]]
* [[Coin]]
* [[Crypto-assets]]
* [[Cryptocurrency]]
* [[Daisy chain]]
* [[Data]]
* [[Database]]
* [[Decentralised finance]]  (DeFi)
* [[Digital asset]]
* [[Digital currency]]
* [[Distributed ledger]]
* [[Ether]]
* [[Fintech]]
* [[Layer 1 network]]
* [[Layer 2 network]]
* [[Non-fungible token]]
* [[Payments and payment systems]]
* [[Platform]]
* [[Ripple payment protocol]]
* [[Smart contract]]
* [[Solana]]
* [[Stablecoin]]
* [[SWIFT gpi]]
* [[Token]]
* [[TradFi]]


[[Category:Cash_management]]
[[Category:Long_term_funding]]
[[Category:Financial_products_and_markets]]
[[Category:Corporate_finance]]
[[Category:Liquidity_management]]
[[Category:Technology]]

Revision as of 19:53, 17 August 2014

1.

A perpetuity is similar to an annuity except that the fixed periodic cash flow which starts at the future Time 1 period hence then carries on for ever (‘in perpetuity’) rather than stopping after Time n.

The present value of a fixed perpetuity is calculated - assuming a constant periodic cost of capital (r) for all periods from now to infinity - as:

Present Value = A1 x 1/r


2.

For a growing perpetuity the present value formula is modified to take account of the constant periodic growth rate from Time 1 period hence to infinity as:

Present Value = A1 x 1/[r-g]

where g = the periodic rate of growth of the cash flow.

The growing perpetuity concept is applied by the Dividend growth model for share valuation.


See also