Crypto, Bitcoin Market is "just a little bit behind"
Michael Casey, president of CoinDesk's advisory board, a well-known author, and co-founder of Network Effects Media, interviewed Cheddar, an important and successful commercial media, on Thursday. The crypto-friendly outlet invited the industry insider to discuss the status of the crypto industry today and were presented numerous unique topics.
A Cheddar still, who avoids asking the normal round of outlet questions, asked Casey if the way cryptogymers appreciate digital assets like Bitcoin (BTC) or Ethereum (ETH), is crying the cryptocurrencies. Responding with passion, the proposing crypt, which regularly contributes to CoinDesk, has observed that the evaluation models of this market are "all but a little backward".
Elaborating what he intended, Casey noted that cryptocurrencies and related technologies are seen as a way to disintermediate ecosystems and to curb centralized entities. But now, the way we value these blockchain-based assets is quite like how traditional markets are managed – a big no-no for irreducible decentralists.
He added that we are analyzing Crypto's fiat performance or, more specifically, continually denote the value of BTC in dollars rather than the iconic ₿ (itcoin). In other words, he said that much of the cryptographic market focuses on a successful exit into fiat rather than keeping the skin in the game, so to speak. Casey added that this causes the incentives to be misaligned, as investors seek profit, instead of ousting the often corrupt powers.
Case in point, Bitpay's CEO recently told CNBC that much of Bitcoin's price is based on speculation rather than legitimate use in the real world, especially in everyday life.
Bitcoin Foundations Boom – Network Value
Although Casey has not touched exactly how to evaluate cryptocurrencies, a growing theme in this ecosystem has been the use of Network Value to evaluate this nascent industry. In particular, the concepts of network value have been used by analysts and researchers to determine what is the "true value" of a cryptoguide, such as BTC.
Just recently, Tom Lee, head of Fundstrat's research, told his clients that the fair value for BTC is $ 13,800 to $ 14,800, in particular due to the active portfolio addresses, the amount of BTC transferred and the features unique to the good. being a deflationary currency that is sovereign, resistant to censorship, without borders and immutable. This interesting forecast aligns with its overly optimistic year-end forecast, as previously reported by Ethereum World News.
While Lee was quickly criticized for his call, his optimistic view on Bitcoin is not left unjustified. Anthony Pompliano, better known as "Pomp" for the crypto industry, recently spoke of the fact that the network that supports BTC is growing, even if prices remain depressed.
Pomp, a former employee of Snapchat and Facebook, has exclaimed that Bitcoin is the most secure transaction transaction level in the world, so the value in BTC will always exist. In another piece, the Morgan Creek Digital member noted that the growing number of transactions, the decrease in commissions, the annual growth year after year and the unprecedented creation of active nodes are another reason to be bullish on Bitcoin.
Also in October, Joseph Lubin, founder of ConsenSys and co-founder of Ethereum, told CNBC's First On segment that while cryptography is in the middle of a "bust", the fundamentals are "booming". with Mike Novogratz at Princeton, also noted that this budding ecosystem is the strongest it has ever been, indicating that the decline of speculative interest has not irritated the true believers of this innovation.
Title Image Courtesy of Jamie Street on Unsplash