Why Old School Valuation Does Not Apply to Cryptocurrency
Cryptocurrencies have redefined investment classes. There is a strong financial argument that these digital coins are unlike cash, stocks, bonds, hard assets or real estate and have established themselves as a distinct asset class.
They have added the option for another portfolio element to be added to a diversified investment strategy.
As a distinct asset class, cryptocurrencies have a unique blend of value drivers and value multiplication opportunities. Using the old valuation models and techniques will give a wrong idea about the true value of a coin.
This has happened to Dentacoin, which recently completed a successful ICO. Here’s four ways in which the old school valuation approach does not work for Dentacoin.
Dentacoin is designed to improve global dental health. That might sound as a laughable goal to some people who dismiss it as impossible. Others think it is a good goal but just too big to be practical.