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Data and analytics (Chainalysis, Dune Analytics, Messari);
Mining includes mining companies (TeraWulf, Hive),
hardware (Bitmain, Bitfury) and lending (Genesis, NYDIG);
Web3 (Skynet, Helium, Protocol Labs);
Social networks (DeSo);
R&D (OpenZeppelin, Shard Labs),
Browser/wallets (Argent, Opera);
Security (Gauntlet, Forta);
Identity (Spruce);
Cross-chain bridges (Wormhole).
Valuation for cryptocurrencies
How cryptocurrencies have been valued. There are at least four approaches that hold some validity.
First, as an economic mechanism, the best argument is that the cryptocurrency network can and does produce value through its ability to implement fast, secure, and/or cheap transactions. The worst economic explanation is that bitcoin is popular because investors simply believe its’ price will continue to rise, obviously an unsustainable assumption. Traders in this space often shrug off losses with the explanation that they are long-term investors and expect a rebound.
Second up is Metcalfe’s “Law”, whereby value (market capitalization) is related to the number of participants in the network. It makes sense that the value of the crypto network will increase as it grows in size. Empirical tests of this hypotheses suggest that any significant results are strictly a function of including bitcoin and ether in the sample.
Third, Bitcoin is digital gold. Gold (and possibly cryptocurrencies) have value due to its durability, divisibility, transportability, homogeneity, and rarity. A plausible argument that will take more time to develop the necessary conditions to establish the conditions for crypto.
The fourth approach is to value crypto as a multiple of its’ individual cost of mining. That cost can be compared to other commodities or assets that are also subject to an extraction process (gold, silver, copper, oil).
Valuation for cryptocurrencies
How cryptocurrencies have been valued. There are at least four approaches that hold some validity.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4124576
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