2018 was a monumental year for digital/crypto-assets. Of course, the headlines were dominated by price action, particularly in terms of the digital/crypto-asset market capitalisation decrease from USD 611,278,000,000 in January 2018 to USD 128,378,146,413 in December 2018 (approximately -79%). But price action alone — despite its importance for many, and its relevance as an indicator of mainstream interest — barely scratches the surface of the fundamental changes that took place, and are in the works. Here, we look at a few highlights:
1. Crypto Futures Contracts Launch:
When Bitcoin futures were first launched in 2015 on BitMEX, it was touted as an indication that Bitcoin…
Prophesying dips and even lower dips with the power of valuation
In the previous article, we discussed the oft-used NVT Ratio and NVT Signal as valuation models for large cap cryptoassets. In this article, we will look at a valuation technique based on Metcalfe’s Law of Network.
Although cryptoassets lack proven valuation models, it is crucial to have models in place as a standardized measure of the value projects or coins bring to the ecosystem. Valuation models are consistently proposed to the community, acting as a guide to investors or traders to tell if a coin is overvalued or undervalued…
Prophesying moons and dips with the power of valuation
This is Part I of a two part series. Check out Part II on valuing cryptoassets here!
Bitcoin has gone through a lot: from being worth basically nothing (at inception), it has seen highs of USD$19,650.01; and for the past two months, have seated comfortably between USD$6,000–7,000. It is unbelievable for the early investors to see how this humble currency multiplied almost 2,000,000% in the span of 8 years. However, even without the well-publicized dip in May 2018, many are doubtful of Bitcoin’s potential. …
Iris Loh
believes that mediocrity should be criticized.
