This Week in Crypto : Valuing Cryptocurrencies 10-6-21

Key Takeaways

• Evaluate cryptocurrencies by their long-term utility and real-world use cases (5-20 year vision), not short-term price speculation—look for projects that will generate revenue like traditional businesses rather than relying solely on buyer/seller demand
• Assess crypto projects by engaging directly with teams on Telegram/Signal and at AMAs to ask tough questions about their white paper, timeline delivery, corporate structure (DAO vs. Foundation vs. corporation), and community communication before investing
• Avoid overnight moonshot cryptocurrencies and 'get rich quick' schemes; instead use dollar-cost averaging to buy and sell quality projects over time, as proven winners like Solana took years to become unicorns, while overnight pumps typically crash just as fast
• Major institutional adoption by US Bank (custody services) and AMC (Bitcoin payments) validates crypto's viability as legitimate infrastructure; cryptocurrency won't be banned in the US due to constituent ownership and shareholder interests across political parties
• Microtransactions enabled by blockchain and smart contracts will revolutionize payments by allowing fractional cent transactions (dimes) without accounting fees, creating new opportunities in music, art, and education through direct automated distribution to multiple parties