Optimism. Devotion. Confusion. Scepticism. Outright hatred…
Cryptocurrencies bring out a wide spectrum of responses from investors.
Their recent arrival in the investment world has been divisive, as some dismiss their existence, while the optimists look for fundamentals that can be used to value them.
Charlie Morris is one such optimist. He’s taken his decades of experience as a multi-asset fund manager to the crypto space to evaluate exactly what cryptos are, and more importantly, how to value them so you can invest and trade them profitably.
Charlie reckons cryptocurrencies are really social media stocks on steroids, and can be valued as such by measuring their network effect. The greater the participation in the network, the greater their value. And as cryptocurrencies like bitcoin are public ledgers, that participation can be measured in minute detail.
Charlie’s gone and made a Bloomberg-esque website which aims to measure that participation through various metrics. One metric in particular – the innocuous sounding Network Spend Ratio (NSR) – he reckons is absolutely key to knowing whether bitcoin is over or undervalued.
Charlie was in the office recently, and I got the chance to find out exactly how this works, and why the NSR is so important to measuring bitcoin. You can watch our short conversation below:
In that video, he’ll explain how he went from being a Grenadier Guard to being one of the most successful fund managers in the City of London, and will reveal some of the tricks he learned along the way. It’s not to be missed.
In the meantime, if you’d like to know what the NSR that he describes in the above video is, take a look at Charlie’s site – bytetree.com – and have a look under the “valuation” heading.
Until next time,
Boaz Shoshan
Editor, Capital & Conflict
Category: Market updates