ICO advisory firm Satis Group has recently been investigating the true value of cryptocurrency based on critical aspects such as technical underpinnings and market composition, rather than the speculation that generally fuels price predictions.
The latest report, entitled “Cryptoasset Market Coverage Initiation: Valuation” looks into various methods of digital asset valuation and makes long-term market predictions on specific cryptocurrencies. It attempts to avoid the kind of emotionally-driven sentiment that fuelled meteoric price rises such as that of late-2017.
The Satis research uses a range of measurement tools including top-down, bottom-up and peer-based valuations. They make a point to note, however, that several factors that could vastly affect price are not included in the valuations. These include manipulation, technical flaws and government regulation – all significant considerations.
BTC, ETH and XRP Predictions
Throughout the report, all scenarios investigated indicate a strong future for Bitcoin (BTC). Its five-year forecast for Bitcoin sees the asset at $96,000 by 2023 and predicts privacy coin Monero to be around $18,000 by the same time.
Its metric scoring system didn’t favor controversial cross-border payments network Ripple in very good light, putting it at $0.01 in five years. The Satis Group report states that this is due to Ripple’s XRP cryptocurrency having centralized ownership and being misleadingly marketed.
The report also found Ethereum (ETH) to be undervalued despite its waning popularity lately. It believes ETH’s strong reputation and liquidity make it a strong contender going forward.
Again it is important to note that this is an entirely metric-driven technical report that doesn’t take into account any external market factors, much of which affect the price cryptocurrencies on a daily basis. It does, however, show assets with the strong technical foundation to withstand mitigating market factors.