How to Value Bitcoin and Invest in Crypto: Advice from Chris Burniske

Unlike companies in the stock market, Bitcoin and other cryptocurrencies don’t have cash flow, profits, or other conventional metrics analysts use to evaluate whether something is a good investment. But there are some traditional economic principles that can help determine whether it’s a good time to buy Bitcoin and its fellow digital assets.

Chris Burniske, the co-author of the book Cryptoassets, shares insights on applying such a valuation methodology on this week’s episode of “Balancing the Ledger.”

Burniske is applying his strategies at his new venture capital fund, Placeholder, which has raised more than $100 million from investors including Morgan Stanley and Union Square Ventures. Placeholder, which launched last year, is betting on “decentralized information networks incentivized with a crypto asset,” and has made five investments so far, Burniske said.

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