Cryptocurrencies are together now worth almost as much as Apple. People are “buying” digital art at Christie’s with non-fungible tokens (NFTs). How the enterprise should play in this space is about as simple – and necessary – as joining Clubhouse.
Valuation — Again
There are at least two ways to calculate valuation. The first makes accountants and finance professionals smile with traditional metrics, like price-to-earnings ratios, price-to-book ratios, debt to equity rations, cash flow, etc. (Of course, there are traditionalists who challenge these metrics.) Then there are the speculators who believe “the story” around future market share, first mover advantage, technology differentiation, “whole new categories” and everything else that justifies a crazy valuation when the traditionalists’ heads explode.
Enter cryptocurrency. How should it be valued? As of this writing, the total value of all cryptocurrencies is somewhere in the $2T range. Are they worth it? Or is there