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:
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. …
believes that mediocrity should be criticized.