The cryptocurrency industry maintains its position as the most volatile and unpredictable market for investors. As a result, the market is home to a huge number of people trying to accurately predict market changes, in order to reduce investment risks.
Andrea Antonopoulos, a prominent Bitcoin, and open blockchain expert, conducted a live session discussing the alternative uses of blockchain, accompanied by various follow-up questions. Antonopoulos also addressed some of the questions that were asked by the viewers of his previous live session.
One of the questions highlighted was,
“Should we consider code commits, blockchain activity, number of DApps, or number of peers as key performance indicators (KPIs)? What are the metrics for success?”
Antonopoulos suggested that the answer “depends on you’re trying to achieve”. Supporting this statement, he explained how the selection of performance indicators reflected the end goal of an individual. He further persuaded his viewers to ask themselves,
“Are you looking at performance metrics that tell you whether a blockchain is sufficiently decentralized or actively developed or showing a lot of innovation in the community? Is it something where you’re looking for future increases in value?”
Coming back to the main question, Antonopoulos stated that the credibility of KPIs depends heavily on choosing the metrics that suit their specific needs. However, he conceded that it’s difficult in many cases to measure these things accurately. Antonopoulos also told his viewers to avoid seeing KPIs as an investment zero-sum game where one system wins and another system loses.
Antonopoulos added that many people in the crypto-ecosystem try to attach themselves to certain metrics based on biased ideas.
“What really matters is, which of these systems solves a problem for you better than any of the other systems that you’ve used,” Antonopoulos concluded.