Published in DataDrivenInvestor·Jul 5Neck Deep in Incentivized TestnetsI have always made the argument that the chances a crypto asset will “disappear” or “go bankrupt”, are inversely proportional to its number of users. The recent collapse of Luna shows what happens when holders lose confidence and begin to abandon a project en masse. But what about projects that…Cryptocurrency5 min read
Published in Coinmonks·Mar 20Crypto Growth is Free (as in Beer!)I am interested in exploring the idea that it is much easier to evaluate the potential for price appreciation of a crypto asset, as opposed to that of a traditional stock, because crypto growth is not financed by debt. This, on its face, is a curious idea. What effect does…Cryptocurrency4 min read
Published in DataDrivenInvestor·Mar 8The Magic Lock Box of ValueThere is a magical lock box of intrinsic value, and it accrues credit every time a crypto ecosystem grows or gets used. This magical lock box has nothing to do with any assets “price”, as matter of fact, the value of the contents of the lock box, and what the…Cryptocurrency4 min read
Published in DataDrivenInvestor·Nov 12, 2021Stubborn PabloI am very stubborn. This has been a great boon for my investment career, because I am quite indifferent to market cycles and the latest fads. I am proud to say I only invested in one ICO in 2017, and it turned out great (Tezos). I long ago committed to…Cryptocurrency6 min read
Published in DataDrivenInvestor·Sep 19, 2021How to Value a New Crypto AssetFor the last few months, I have been thinking a lot about how to value, or at least gauge, whether a newly released crypto asset is trading at a price that favors purchase, or perhaps sale, if we are looking a few years down the road. The standard way of…Cryptocurrency6 min read
Published in DataDrivenInvestor·May 21, 2021Crypto Assets Are Primarily Communication NetworksWhen I was in college there was a joke going around that the easiest way to piss off the physics professor was to ask him “what is gravity?”, upon which the professor would launch into a 45 minute diatribe on gravitons and the latest advances at CERN; but the truth…Cryptocurrency4 min read
Published in DataDrivenInvestor·Dec 29, 2020Mr. Market vs. Mr. ICOBen Graham was a towering intellect. He wrote a book which has inspired legions of hedge fund managers and smaller investors to wealth, and quite interestingly, they all took the basic concepts laid out in this book, but applied them in radically different ways. …Bitcoin5 min read
Published in DataDrivenInvestor·Jun 12, 2020Antifragile: Cryptocurrency and the Passage of TimeIn his outstanding book “Antifragile,” Nassim Nichoals Taleb discusses certain technologies that not only are able to withstand long term volatility, and uncertainty, but rather become stronger because of them. I would like to suggest to you that properly executed crypto investments are antifragile in this sense. Long term crypto…Cryptocurrency3 min read
Published in DataDrivenInvestor·Apr 26, 2020Key Asset FeaturesThere are a myriad metrics by which one may measure a crypto asset, but I would like to go back to the basics, what are cryptocurrencies made of? Well, a few key building blocks are common to pretty much all crypto assets: 1. A consensus layer: this is the part…Cryptocurrency4 min read
Published in DataDrivenInvestor·Feb 14, 2020Thoughts on the Long Term Winner | Data Driven InvestorToday we are going to discuss how the long term survivability of a prospective crypto asset is the single best indicator of its investment quality. We will also consider capital’s role in this model and why this is the best approach to investing in a crypto asset. Let us consider…Technology4 min read
