Following the recent moves in GameStop (GME) and AMC (AMC) stocks, and DOGE and XRP tokens, investors across the globe are rightfully questioning fundamental investment analysis. While cryptocurrencies are often heralded as a gambler’s playground, the irony is that digital assets might be one of the few asset classes left for true fundamental investment analysis.
Jeff Dorman, a CoinDesk columnist, is chief investment officer at Arca, where he leads the investment committee and is responsible for portfolio sizing and risk management.
Ideas are a dime a dozen. What separates good investments from bad investments is how you express those ideas to maximize upside and minimize downside. For example, in 2011-2012, many very smart investors looked for ways to express the same idea: that there was going to be a double-dip recession and inflation was going to be rampant after unprecedented monetary policy interjections (of course, the 2009 stimulus was child’s play compared to the…