Cryptoasset Valuations: Past, Present and Future - Chris Burniske @ TOKEN2049
Explore the fascinating world of cryptoasset valuations with Chris Burniske, partner at Placeholder and co-author of "Cryptoassets," as he delves into the past, present, and future intricacies of this emerging asset class at TOKEN2049. With a foundation set in early encounters dating back to 2014 with the Bitcoin Investment Trust, Chris presents a comprehensive journey through the advancements and continuing challenges in valuing cryptoassets.
Chris highlights the paradigm shift from traditional valuation methods, emphasizing the need for new models to account for the unique value drivers inherent in cryptoassets—such as their programmable scarcity and distinct lack of cash flows. The discussion navigates through the core concepts of relative valuation techniques, focusing on network value and its applications and pitfalls in assessing crypto networks' worth.
One of the talk's focal points is the juxtaposition of traditional views—exemplified by valuation expert Professor Damodaran's skepticism—against Chris's optimism for the asset class's potential. Chris also offers insights into the debated use of network value to transactions (NVT) ratios as a crypto equivalent of equity markets' price-to-earnings ratios, showcasing their strengths and weaknesses.
Furthermore, he ventures into the realm of intrinsic valuations utilizing the equation of exchange, offering thought-provoking perspectives on how these innovative methodologies can enhance our understanding of cryptoasset potential. Dive further into how supply-side metrics, such as expected inflation rates, drastically influence asset valuations over time.
For those passionate about the evolving digital asset landscape, Chris Burniske's analytical perspective offers a thought-provoking exploration—prompting viewers to reexamine how they assess value and risk in this burgeoning market.
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