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HEALTH, WEALTH, AND HAPPINESS |
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Hey, crypto investors! Here's what's new. |
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ICYMI: Thanks to all who attended our Members-Only Workshop on joining, investing, and creating DAOs. Click to watch the replay.
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How to Value DeFi Tokens (Bankless): A great article on valuing DeFi tokens like a traditional investor would value a startup company. More than the numbers, examine the principles in this article.
Investor takeaways: Think about a crypto project's TAM (Total Addressable Market), or the size of the potential growth opportunity. Also look at Comps (similar businesses in the non-crypto world) to see how a crypto investment might ultimately be valued. |
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To illustrate this idea of measuring crypto investments against "comps" (comparable companies), here's a look at Curve (CRV), compared with other traditional exchange companies. (Courtesy Bankless) |
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Investor takeaway: Nasdaq has 17x the valuation (TEV) of Curve, but 82x the revenue. This suggests that CRV is massively overvalued relative to Nasdaq. Of course, Curve is growing more quickly than Nasdaq, but the comps suggest that CRV currently doesn't look like a bargain. |
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"How much will my crypto investments be worth in five years?" This is the question that everyone wants to know, especially those who follow our investing philosophy: - Buy and hold bitcoin,
- Plus a small number of high-quality crypto assets,
- For 5+ years.
This approach, as we’ve shown you again and again, has not only wildly outperformed the stock market, it’s performed better than just about any other investment in the last decade. To get you started, we’ve created a new Crypto Investment Calculator: a downloadable Excel spreadsheet that will let you model how much your bitcoin and crypto could be worth in the future, given a starting investment and (optional) monthly investment. |
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Fill in how much you can invest and your timeframe, and it calculates your future crypto value.
"Past Performance is No Guarantee of Future Results" Every old-school financial institution uses this phrase to cover their butts. They us it so much that now it’s lost all its meaning. A better way of saying it is this: “The future will look different from the past.” In other words, don’t look at the spectacular growth of bitcoin this year and assume next year will be the same. Every year is different, especially in the crypto world, where time moves at the speed of Miller’s planet. |
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Smart people like you understand this. There are no guarantees, especially in the crypto world. But it can be hard to get r/GetMotivated to start investing, unless you can imagine your future profits. That’s why we created our Crypto Investment Calculator. It’s not a promise, it’s a model. How the Crypto Calculator Works Our downloadable spreadsheet takes the historical performance of our Blockchain Believers Portfolio, and projects it into the future. You just need three inputs: - A starting investment (anything from $100 to $100,000);
- A monthly contribution (whatever you can afford);
- And a timeframe (any number of years).
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It’s not a prediction, it's a model. Everybody wants predictions. “What will the price of bitcoin be in five years?” (Don’t believe anyone who gives you price predictions – nobody knows.) A model is better than a prediction, because a model lets us look at possible outcomes. Since our model works on the real-world performance of our Blockchain Believers Portfolio, it’s based on historical fact. Again, the future will look different, but these numbers give you a starting point. And we hope they provide the inspiration you need to begin your crypto investment journey. Thanks to Kevin Kelly for the original spreadsheet model, and Jami Segoria for making it interactive. We hope this spreadsheet is the first step (or the next step) in building your long-term wealth. Download it here. Health, wealth, and happiness,
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John Hargrave Publisher Bitcoin Market Journal |
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It doesn't have to be that complicated! |
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Bitcoin Market Journal is a daily newsletter focusing on blockchain and crypto investments. It is written and edited by Evamarie Augustine, Charles Bovaird, Mati Greenspan, and John Hargrave.
Paid subscribers get full access to our top crypto picks; both free and paid subscribers get content to build them into better investors.
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