The Network Value to Transactions (NVT) Ratio: A Breakthrough for Cryptocurrency Valuation

“Price is what you pay, value is what you get.” Warren Buffett. Although we are currently in the midst of a major market correction, the last few years have seen a dramatic surge in the price and market capitalisation of cryptocurrencies. Led by Bitcoin, markets for these revolutionary digital assets have experienced unprecedented growth, which in turn has generated often frenzied publicity for the crypto complex. But rather than the mere headline figures of price and market cap, investors are invariably more concerned with valuation. Are current prices reflective of what Bitcoin et al. are actually worth? Is Bitcoin and/or…...