How do we identify which project is worthy of investing in? Do we follow a new framework or adopt the existing framework?
A typical VC investor will want details of revenue, usage, and user acquisition. There are certain benchmarks they want a piece of software to exceed before they put money into it. They need to know what they're investing in truly has a market. But we have none of those metrics in cryptocurrency.
We have usage, but it isn't accurate. Usage depicts the number of direct participants who run a node on the network. But real usage goes far beyond that. Many people don't have their own nodes but very frequently use a network. Take Bitcoin itself for example. There are roughly 9500 nodes on the network. But the number of people transacting over the network is much higher.
For this reason, I believe the new "user acquisition" is transaction volume on the network. The amount of transactions shows real usage. It includes node and non-node transactions. This is likely to be the key indicator for network growth going forward.
🌩️ What's do you believe is the best way to evaluate cryptocurrencies? Comment below 🔽🔽🔽
➡️ Follow @reverseacid for more cryptocurrency discussion and perspective!
ReverseAcid Monthly Recap
- ReverseAcid Monthly Recap - November 2018 (Vol 1)
- ReverseAcid Monthly Recap - December 2018 (Vol 2)
- ReverseAcid Monthly Recap - January 2019 (Vol 3)
About Reverse Acid
Be a part of our Discord community to engage in related topic conversation.
Follow our Instagram and Twitter page for timely market updates
Congratulations @reverseacid! You have completed the following achievement on the Steem blockchain and have been rewarded with new badge(s) :
You can view your badges on your Steem Board and compare to others on the Steem Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOP