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This is not how you compare two industries. Comparing Visa to Ethereum, in terms of the value of the service that they provide, is not a problem at all, in fac
by lottin 5y ago
This is not how you compare two industries. Comparing Visa to Ethereum, in terms of the value of the service that they provide, is not a problem at all, in fact it's very easy. For that we would use gross value added, which is the value of output minus the value of goods and services employed to produce such output. For example, in the case of Visa and Ethereum, the output is processing of financial transactions, and the market value of that output are the fees that customers pay to have their transaction processed. From that, we have to subtract the costs of all the resources employed by Visa and Ethereum to provide the service, respectively, to get the value added. These are all known quantities, which tell us exactly the market value of the services provided by these companies and/or industries, so that we can compare one with another. Market cap is absolutely irrelevant to that end.