Is Bitcoin the greatest option ever created? Think about it. You buy a piece of the scarce infrastructure that thousands of businesses and developers are building on.
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Should I Invest in Bitcoin?
Bitcoin volatility is brutal for new investors. Make sure to think through your strategy before buying.
The purpose of this post is to activate the strategy center in your brain and increase your likelihood of owning Bitcoin with success.
Willy Woo Interview: The NVT Ratio and Future of Cryptocurrencies
This post is the product of a four-hour, very enlightening conversation between Willy Woo of woobull.com and I. He’s a brilliant, creative Bitcoin data-wizard. We cover the mechanics and application of the NVT Ratio (Network Value to Transactions Ratio), a ratio Willy Woo invented to track bubbles and buying opportunities in Bitcoin and other Cryptocurrencies. We cover cryptoasset analysis and talk about the innovation and disruption caused by Bitcoin and Cryptocurrencies. Enjoy.
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Investing in Tokens and Decentralized Business Models
A Comparable Approach to Cryptoasset Analysis
For the purpose of evaluating companies and stocks, one of the popular methods is “The Comparable Approach”. Companies with the same characteristics are compared on a number of ratios such as Price/Earnings and Price/Book Value. A similar method can be used when assessing the potential of crypto assets.
The following framework was used for analysis of the crypto asset Basic Attention Token. The method uses target market value, projected market share and a ratio for comparing price/utility with another cryptoasset.
Two inputs are used:
- Target market and potential market share (Online advertisement)
- A ratio in line with P/E, P/BV ratio used in stock markets (Daily Transaction Velocity)
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Antifragility and Optionality in Bitcoin and Fat-Protocols
Antifragility and Optionality in Bitcoin, Cryptocurrencies and Fat-Protocols
Cryptocurrencies, native to blockchain based protocols can be seen as options. They represent fundamental internet infrastructure. These protocols are like railways on the 8th continent, the internet. Some of these railways have huge potential for innovation and applications to be built on top of them. The right to use future applications based on the protocol is obtained by purchase of the native cryptoasset. To use the apps built on the Bitcoin network you’ll have to own bitcoins.
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