Crypto Investing: Are We Doing It Wrong?
January 04 2019 - 1:20PM
InvestorsHub NewsWire
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Bitcoin Global News (BGN)
January 04, 2019 -- ADVFN Crypto NewsWire -- Bitcoin is the only
cryptocurrency that matters. All other cryptocurrencies have little
value and therefore, it is nearly impossible to do accurate
valuations of them. We, as crypto investors and professionals, have
heard these statements and more time and time again as the
blockchain industry and its’ cryptocurrency markets continue to
develop.
Overarching all of this is a
question that none of us seem to have found an accurate answer to.
What gives blockchain projects their value beyond the obvious
examples of Bitcoin and similar projects that serve as new forms of
money?
In an article for CoinDesk today,
Sid Kalla and Bradley Miles of the Ethereum firm called Roll,
suggested that the central problem in crypto investing today is
that we are not defining any coins or tokens correctly as an asset
class. As you may have already seen through the work of
professionals like Chris Burniske and Jack Tatar, the most popular
definition of cryptocurrencies in traditional financial terms is to
call them “crypto assets.” Kalla and Miles make no qualms about
suggesting that to do so is a fallacy and that all cryptocurrencies
should be defined as a new class of investment product, not as an
existing one.
With this in mind, you may find it
difficult to conceptualize a road ahead so to speak. Related to
this, it would be logical to ask: is there an answer to what this
new class should be? Following that, would defining
cryptocurrencies in this way help us to more accurately discover
their intrinsic value?
As in any new industry, the easy
answer here would be to say that it is too early to tell. Given the
nature of the blockchain space, especially in a current legal
context, we could more precisely conclude that we need more and
clearer regulatory frameworks before we even begin to answer such
questions.
Here’s to hoping that 2019 brings
those answers that we all crave.
By: BGN Editorial Staff
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