Cryptoassets The Innovative Investor’s Guide to Bitcoin and Beyond (2017, McGraw-Hill)

Review From User :

Cryptoassets is a groundbreaking and approachable book explaining the what, why and how to invest in cryptocurrencies exploring blockchain based technology using top cryptocurrencies like bitcoin, ethereum, litecoin, ripple, monero, dash, and zcash as case studies. I felt a similar excitement and mind-opening bliss reading this, to how I felt reading the Intelligent investor years ago. The new era of innovative investors can consider cryptocurrencies as an alternative asset class to invest in using a disciplined and principled approach. The early internet ushered in a new wave of companies and innovations and cryptocurriences are positioning themselves to do similar. However, with the web, most of the value was captured in the application layer from the companies that built on top of the shared protocols of the internet (TCP/IP, HTTP, SMTP, etc). With blockchain, most of the value is captured on protocol layer, i.e the Bitcoin network, which reward participants in the network a share of the network value via cryptographically secured and accessible tokens.

Cryptoassets provides a framework and various mental models to start thinking about cryptocurrency valuation so you can cultivate independent thought around your investments and research. Some of the criteria and resources outlined to use for fundamental analysis of cryptoassets are identifying it's potential utility via the technical white paper, or it's use in the community, it's decentralization edge and security model, the current valuation & supply, it's issuance model, it's community and developers base, it's relation to it's digital siblings, exchange and wallet support, trading pairs, miner decentralization, number of transactions and user adoption.

The authors break down the assets types of cryptocurriences using digital commodities (cryptocommodities), provisioning raw digital resources, i.e Ethereum, or digital tokens (cryptotokens), provisioning finished digital goods and services, bitcoin. Decentralization and security are primary features of blockchain technology and the book does a great job at explaining other differing value propositions of each of the top cryptoassets.

The book also does a great job and providing historical context and the technical evolution and core value proposition behind each of the cryptoassets it uses for case study. The financial history and comparison was enlightening and highlighted the staying power and performance of Bitcoin including how it has performed against other alternative investments. Another strong inclusion in this book was information around Portfolio Theory, Asset Allocation and Risk Management, things often overlooked and underestimated by investors.

A core principle behind Graham's Intelligent Investor is to focus on the inherent value of an investment without getting caught in the irrational behavior of the markets. The book talks about investment speculation, and how individuals speculating is less dangerous than the speculation of the crowds or speculation fueled by a ton of leverage and credit. As well as how to spot Ponzi schemes and various ways to store and protect your cryptoassets. It also explores ICOs which have been the source of great speculation as well opportunities.

Overall, I am really impressed with the level of research and detail put into this book which felt like a companion analyst and I highly recommend it. I have a finance background and still came out learning more about finance and investing. I have been exposed to the crypto-space and received, even more, exposure and insights from this book. The depth, quality, and clarity of cryptoassets make it a great book for beginners and experts alike.

Media Size : 2.2 MB