Network Value

Coinmarketcap.com lists all cryptoassets and cryptocurrencies by their market capitalizations, but market capitalizations imply these tokens are companies when they are in fact networks. It’s important to note that just the terminology is changing and not the way to calculate it. It is still the calculation below:

Network Value = (# of units) x (value per unit).

Adopting the terminology that properly reflects the cryptocurrency market will give the asset class further legitimacy as well as help differentiate us from other types of investing like venture capital where they use the term market capitalization. This might seem like a small thing, but I believe will help the market move one step closer to becoming a proper asset class.

Originally published at www.arilewis.com.

Subscribe to my weekly newsletter about cryptocurrency investing