Cryptoasset Valuations: Past, Present and Future - Chris Burniske @ TOKEN2049
In this engaging talk from TOKEN2049, Chris Burniske, a partner at Placeholder and co-author of the seminal book "Cryptoassets," delves into the nuances of crypto asset valuations, tracing their evolution from the early days to potential future trends. Burniske reflects on his journey into crypto asset valuation, starting with his tenure at ARK Investment Management, where understanding Bitcoin's potential was crucial for evaluating investment opportunities.
A key highlight of Burniske's presentation is the differentiation between two valuation methodologies: relative and intrinsic. He touches on the dynamic and often volatile nature of crypto markets, emphasizing the common practice of relative valuations, like network value compared to market capitalization, and the challenges posed by metrics such as circulating supply versus total supply.
Additionally, Burniske presents an examination of intrinsic valuations, particularly through the lens of monetary theory's equation of exchange, MV = PQ, exploring how this can be applied to crypto economics. He showcases the substantial role of velocity in determining the necessary monetary base of a crypto network, arguing for a more profound understanding of the underlying mechanics of digital assets.
Throughout the talk, Burniske acknowledges the contrasting views within the financial community, notably professor Aswath Damodaran’s skepticism of cryptocurrencies as an asset class. Despite differing opinions, Burniske underscores the importance of developing robust valuation frameworks to navigate the emerging crypto landscape.
For those keen to understand the intricate fabric of crypto asset valuation, this session is an invaluable resource. Don't forget to like, comment, and subscribe for more insightful talks from TOKEN2049.
