Back in early 2021, a buddy of mine was asking for advice about Crypto. I told him I didn’t want to advise too much, but showed him my portfolio and said that it was good to hold the big guns (BTC and ETH) and venture into alts at your own risk, depending on your risk tolerance.

Fast forward like two weeks and he was 100% balls deep in one coin (RSR). He kept talking about how based on all the big name investors and plans for this and that the value was BOUND to keep going up once full adoption kicked in.

Nowadays his holdings are at about a tenth of his buy in (ouch), but I have often thought about that conversation and how I asked him what he thought the inherent value of RSR was versus the speculative value. Since crypto is speculative, it makes sense for market caps to be based on exchange prices and listings, but there must be some sort of empirically sound way to actually determine the worth of an asset that could apply to crypto. I can’t help but think that in such a case my buddy would have maybe saved his own ass for a winter of hurt.

Thoughts?