Can Cryptocurrency Really Be Valued the Traditional Way?

Here's what institutional investors are saying: the traditional valuation frameworks we apply to equities and bonds simply don't work for crypto assets.

A major investment firm recently put it bluntly: "We believe cryptocurrency valuation claims are largely unfounded. Any investment thesis built primarily on valuation models should be approached with extreme caution."

Why does this matter? Because unlike stocks with earnings reports or bonds with cash flows, digital assets operate in a different paradigm. They're driven by adoption curves, network effects, and market sentiment rather than discounted cash flow models.

This doesn't mean crypto can't be an investment. It means investors need to shift their analytical framework entirely. Focus on metrics like on-chain activity, user growth, transaction velocity, and ecosystem development instead.

The takeaway: if you're waiting for someone to confidently tell you what Bitcoin or Ethereum "should" be worth, keep waiting. The smarter move is understanding what drives price discovery in crypto markets and making decisions accordingly.