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Nam Sardar Implied: Today, crypto is at a $2T market cap. By 2030, we will witness the rise of DEXs, DAOs, stablecoins, NFTs, DeFi/smart contracts. Cryptocurrency would have become a payment mechanism and SoV with a combined potential market cap of $10T.
It is important to consider a coin seriously only after it proves its raison d’etre. If a coin promises to achieve something in the future, it is just a promise. It is not possible to price in a promise. Cryptocurrency markets are not made up of rational actors. In the cryptocurrency ecosystem, all projects are considered not so successful until they are proven useful. It might not be practical to take to a DeFi craze immediately. It is very important to DYOR.
It is not easy to value digital assets in the traditional sense by using discounted cash flows, which can be compared to valuation metrics. When assessing the strength of coins, it becomes practical to consider the celebrity status of their founders and their technological reputation in cryptocurrency to a certain extent.
Also, the partnerships these tokens attract decide how they can be rug pulled by the partnerships they get into. The agreements signed and the novel technology they are working towards which are incorporated into their blockchain all decide the merits of the token.
PoW projects should exhibit a reasonable level of decentralization of their distributed ledger, miner stats, reliability of blockchain, etc.
PoS projects need to be judged more by their founders’ reputation, funding raised, and their ability to provide stable staking rewards.
It becomes important to perform the basic investment calculations. In addition, users need to know their way around coin custody, etc.; this will significantly increase the amount of wealth one will be able to own in Bitcoin or any other asset type.
Nam Sardar further demonstrated using a simple calculation with Cardano ($ADA) about what to look for in an asset type. For instance, Is ADA a speculative asset? It is a relatively centralized PoS blockchain that promises innovative DApp development with a multi-asset ledger? Smart contracts have been in work since 2017; whether it will achieve what it promises, who knows? Possibly?
The popularity of Charles Hokinson and the new agreements he gets into with countries and his plans for Cardano, and the fact that it is a top 5 coin make one mid-term bullish about it.
Very commonly, new money enters the cryptocurrency space by entering into Bitcoin. Further, when investors realize that their money will grow faster with Altcoins, then they diversify their investment, and all or part of their holdings flows into the top-50 coins and beyond.
