On Value, Velocity and Monetary Theory

medium.com

Alex Evans (a fellow traveler in the world of VC) has provided a cogent analysis of how one might value tokens through the lens of economic theory. While I don't fully agree with the end result, I appreciate the level of rigor here; with so much irrational exuberance in this space, we all stand to benefit from thought rooted in real theory as opposed to flashy ICO countdown timers.

The uniting argument in the above articles is that tokens that are not store-of-value assets will generally suffer from high velocity at scale as users avoid holding the asset for meaningful periods of time, suppressing ultimate value.

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