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Why is the valuation of cryptoassets important?

The valuation of cryptoassets has emerged as a critical topic owing to the growth in popularity and adoption of cryptoassets.

Do cryptoassets need a valuation model?

One of the biggest issues that valuation of cryptoassets faces today is the short duration of their existence, which limits historical data and hence robust statistical testing. However, there have been numerous endeavors to construct valuation models, some unique to the fun-damentals of cryptoassets and some borrowed from traditional finance.

What is the valuation model for bitcoin?

For bitcoin, the valuation model found most relevant to interviewees was the addressable market approach to either gold or M2 money supply,12 depending on the investor’s perspec-tive on bitcoin as an alternative to gold (“digital gold”) or a medium of exchange.

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