How to Value a Cryptoasset, a Hash Power Single, w/ Chris Burniske – [Invest Like the Best, EP.62]

Presented By

This episode is a continuation of the Hash Power series. It is the first of what we will call a Hash Power single—a series of conversations each with a single guest on a specific topic. In this case my guest is Chris Burniske, and the topic is cryptoasset valuation. This conversation is loaded with information, I think you are going to love it.

Chris recently released book called Cryptoassets, which is a must read for those interested in this field. Chris was at one point the only traditional buy side analyst covering bitcoin, and is now a partner at a new crypto firm called Placeholder. Chris has developed new frameworks for evaluating and valuing cryptocurrencies, marrying techniques and ways of thinking for several different asset classes to assess the newest asset class. Chris prefers the term cryptoassets because as you’ll hear, several of these tokens aren’t really currencies at all. We discuss the differences between cryptocurrencies, cryptocommodities, and cryptotokens. We begin our conversation with a deep dive into the equation of exchange, which Chris has been using as a starting point for understanding utility value.

You can see all crypto related conversations at Please enjoy this conversation with Chris Burniske.

Hash Power is presented by Fidelity Investments

Books Referenced

Cryptoassets: The Innovative Investor’s Guide to Bitcoin and Beyond

Links Referenced

Hash Power Podcast Documentary

Nic Carter (twitter)

Cryptoasset Valuations (Medium)

Show Notes

4:58 – (First Question) – Chris’s overall method for evaluating cryptocurrencies

5:14– Cryptoassets: The Innovative Investor’s Guide to Bitcoin and Beyond


6:47 – The equation exchange


11:19 – Bonding


12:35 – How bonding may represent a more efficient way of representing consensus over proof of work


14:29 – Why the amount being bonded and held should be taken out of the float


16:58 – Using bitcoin as an example to figure out remittances in the PQ side


18:31 – Looking at the velocity of various crypto-assets


21:04 – Chris’s impression of the different way of categorizing various crypto assets


24:37 – Explaining Auger as an example of a cryptotoken


25:38 – How could these networks be impacted by not having any censorship


27:57 – Exploring the gap between expectation vs reality in the value of crypto currency


30:43 – Other ways of valuing these crypto assets

30:50 – Hash Power Podcast Documentary


33:32 – Explaining the idea of billion dollar a day onchain transactions


36:05 – How to measure the value of the underlying network

36:37 – Nic Carter (twitter)


37:13 – What are the variables that matter when investing in cryptocurrency on a long-term horizon


39:24 – Determining when it’s better for a network to be centralized vs decentralized


42:03 – Networks that Chris is most excited about


44:06 – Understanding the consumption side of the steam marketplace


46:01 – Deep dive into the Aragon network


47:27 – How does Chris evaluate existential risk of networks


51:09 – Could these assets really ever go to zero?


54:07 – Is there a scenario in which velocity gets so high that it negatively effects the price


56:10 – What are the unknowns of cryptocurrency that Chris is most interested in

56:24 – Cryptoasset Valuations (Medium)