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RE: Can Bitcoin Go to Zero?
The P/E ratio of cryptocurrencies is supposed to be NVT ratio, which also has flaws but is definitely the closest we have for relative valuation purposes. Thanks for your comment as always Rick.
I had to google to find out what the NVT is. Thanks much for ameliorating my ignorance yet again. When I read Woo's definition with a 28 day moving average that includes 14 forward looking values it was a WTF moment. That definition is useless if you are trying to consider the NVT today!
Kalichkin's NVT using a 90 DMA is better, but any method is suspect when the real daily transaction value is a moving target that nobody can be sure about. (My caustic interpretation of Justin Chan's excellent DDI article, http://www.datadriveninvestor.com/2018/03/15/the-network-value-to-transactions-nvt-ratio-a-breakthrough-for-cryptocurrency-valuation/)
Is any exchange including NVT charting in their customer charting offerings? My gut says probably not, but I have no experience outside of gdax. Their charting offerings are by no standard impressive, AKA unimpressive by any standard.
Random thought: If NVT is a potentially valuable metric, could the Bitcoin blockchain be modified to include a REAL block transaction value value that could be summed on a daily basis to provide a REAL Daily Transaction Value value. Are you aware of anybody thinking/proposing such a thing within the Bitcoin development communities? Or is the idea too circular for consideration?
I'm taking it as a sign from the universe that you're posting videos again because I've been out of crypto for about 50+ days and getting ready to dive back in within a few days, maybe.
I just finished backtesting my rule set from 1/30/17 thru 5/16/18 using a worst entry/worst exit method after each 12/26 EMA crossover. This long only scheme produced a 467% return over that timeframe, though the last two entry/exit roundtrips returned -23% and -2% losses. I would be ecstatic to achieve even a quarter of those results in the next 18 months, so I believe I'll play this hand.
Regards,
Rick
hey can you review ALQO? thanks
@makesushi, I could review ALQO but nobody would care what I think and I know nothing about ALQO. I think you meant to reply to @cryptovestor and I am but a humble acolyte and part time curmudgeon. :-)
Peace,
Rick