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RE: Value Investing: a timeless stock-picking strategy

in #finance7 years ago

This is all very interesting and relevant on the stock market.

But the question that interests us in the world of cryptocurrency is whether there exist any, even rudimentary models to evaluate cryptocurrencies. Suppose you have a utility token used in a decentralized app used to solve some real world problem. Would it make sense to treat the tokens similarly to stock in a company? What if the token was released by a company that also raised capital on the stock market? I could be wrong but it seems that theoretical work in this field is severely lacking.

What do you think?

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Very nice point! I think that right now it is still complex to gauge the impacts of whatever token it is. However, I think that the approach to be used when evaluating an investment in the crypto space should follow the one used in the stock market; this is why I chose to open my article series with the old but gold value investing technique. We should always ask ourselves if the asset is undervalued and especially if it will gain consistent value over time. If both answer are yes, we should consider investing. Do always your own research guys and don't follow the masses. Being contrarian is often the key to be a successful investor. F