Thread by @ByteSizeCapital

Recent valuation projections by Satis Research directly align with the conclusions of @alexanderliegl and @hasufl's deductive valuation framework for cryptocurrencies.

Where will value accrue?

Mutually exclusive, collectively exhaustive, non-sovereign stores of value.

Categories of non-sovereign stores of value?

1) $BTC -> asset class in its own right; hardness of Bitcoin monetary policy is unmatched
2) Privacy coins -> introduce fungibility (e.g. $XMR, $DASH, $ZEC)
3) Smart contract platforms -> introduce programmability (e.g. $ETH, $DFN).

In line with our recent thread on $BTC as store of value, the dominant asset within each category will likely exhibit the "hardest" monetary policy.

https://twitter.com/ByteSizeCapital/status/1028539076763213824

Keep in mind, the vast majority of privacy coins & smart contract platforms regularly coordinate network hard-forks, compromising the hardness of their monetary policies.

Examples?

1) $XMR -> changes to the PoW algorithm
2) $ETH -> changes to the inflation schedule.

This opens the landscape to competitors with a stronger focus on immutability & decentralisation like grin-tech.org & $ETC.

Of course, the greatest threat to privacy coins & platforms is the integration of fungibility & programmability into $BTC.

Given Bitcoin's unmatched monetary policy, the introduction of fungibility through second layer solutions (e.g. @lightning) & programmability through sidechains (e.g. @RSKsmart) present the very real possibility of Bitcoin cannibalising the entire market.

"CRYPTOASSET MARKET COVERAGE INITIATION: VALUATION" by @TheSatisGroup: research.bloomberg.com/pub/res/d37g1Q….

"A deductive valuation framework for cryptocurrencies" by @alexanderliegl & @hasufl: medium.com/@alexander.lie….