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14 min 29 sec
Available in:English

Cryptoassets: The Innovative Investor’s Guide to Bitcoin and Beyond

Explains what cryptoassets are and how blockchains keep honest records. Shows how an ordinary investor can judge a coin, spread risk, buy carefully and guard private keys without following the crowd.

Table of Content

Most people meet cryptocurrency through headlines that call it either the future of money or a fast way to lose it. In Cryptoassets, venture investor Chris Burniske and financial researcher Jack Tatar take a calmer view. A cryptoasset, they argue, is a new kind of commodity, built from software and a currency with a fixed supply, and an ordinary investor can learn to judge it.

Their case is that this asset class offers a rare opening, but it pays only people who understand what they are buying, respect the risks and check each project before they commit money. The path starts with how a blockchain keeps honest records and how Bitcoin was born. Then come the two crowd mistakes that ruin beginners. It ends with a practical kit: how to spread risk, where to buy, how to protect a private key, and which warning signs in a white paper should send you away.

A cryptoasset behaves a little like oil and a little like gold, yet nothing physical sits underneath it. Understanding that odd double nature is the first test any coin has to pass.

No bank keeps the books, no government signs off, and millions of strangers hold the records. That sounds like a recipe for fraud. The authors explain why it works the other way.

Bitcoin launched on Halloween, its creator has never been confirmed, and it was meant to replace trust with math. Its successors took that idea in directions the original never attempted.

The authors see a second chance for anyone who missed the early internet. They also describe two habits of mind that turn that chance into a loss, and both feel perfectly reasonable at the time.

Stocks and bonds already pull in opposite directions when the economy turns. The authors argue there is an even better relationship between assets, and that cryptoassets may supply it.

Getting a first coin is easy. Keeping it is where many investors slip, because every storage choice trades convenience against safety, and some popular platforms lean the wrong way.

A rising price says nothing about whether a project deserves your money. A handful of documents and people can say a great deal, if you know which signs to read.

What Burniske and Tatar describe is an asset class that arrived without a manual, and they suggest the people who profit will be the ones willing to write their own. The software is new, the scarcity is borrowed from gold, and the ledger defends itself through math. None of that removes the old dangers of crowds and overconfidence, and the authors say plainly that money put into crypto can be lost.

What the book really offers is a habit of checking. When a coin is everywhere in the news, read its white paper before you look at its price, and treat vagueness or typos as a reason to walk away. Look up how many currencies it trades against, and ask what it adds to the stocks and bonds you already hold. Once you own it, decide how much convenience you will give up for safety, and keep most of your keys where no hacker can reach them.

Bitcoin was born from distrust of institutions that asked to be trusted. The investor this book has in mind turns the same rule on Bitcoin and every coin after it: trust the proof, not the promise.

About this book

What is this book about?

Cryptocurrency headlines tend to split into two camps: the future of money, or a quick way to lose it. Chris Burniske and Jack Tatar take a calmer line. They treat cryptoassets as a new asset class, a commodity made of software and a currency with a limited supply, and they argue that investors can learn to value it. The book explains how a blockchain works as a shared ledger that millions of computers keep and that is very hard to cheat. It tells how Bitcoin was born after the 2008 financial crisis and how Ethereum and others took different routes. The authors are openly optimistic, comparing the opportunity to the early days of eBay and Google, but they spend just as much time on the traps of crowd speculation and the belief that old rules no longer apply. Readers get a working toolkit: how correlation and diversification let crypto balance a stocks-and-bonds portfolio, how to buy through an exchange, what trading pair diversity reveals, the trade-off between hot wallets and cold storage, and how to read a white paper, a community and an issuance model before putting money in.

Book Information

Rating:

Genre:

Crypto & Blockchain

Topics:

Investing, Risk Management

Publisher:

McGraw Hill

Language:

English

Narrator:

Luke

First published:

September 28, 2017

Pages:

368

Length:

14 min 29 sec

Get the book:

Amazon

Who it's for

  • Hoping to understand bitcoin

    Professionals curious about bitcoin who want to understand it before putting money in.

  • Investors weighing crypto

    Investors with stocks and bonds weighing whether a small crypto position could balance their portfolio.

  • First-time crypto buyers

    First-time buyers unsure how to pick an exchange, judge a new coin or store a private key safely.

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About the Author

Chris Burniske

Chris Burniske co-founded Placeholder, a New York venture capital firm focused on cryptoassets, in 2017. Before that he led the Next Generation Internet strategy at ARK Investment Management, which became the first public fund manager to buy bitcoin, and his commentary has appeared on CNBC and in the Wall Street Journal. Jack Tatar is CEO of GEM Research Solutions, a financial services research firm. He has more than 30 years of experience with clients and advisors and has followed Bitcoin since its early days.

Ratings & Reviews

Ratings at a glance

4.4

Overall score based on 589 ratings.

What people think

Listeners find this title strongly recommended for grasping crypto assets, as it offers a superb introduction to blockchain technology. The writing is also noted for being accessible and well-organized, providing a succinct survey of the field. Its utility as an investment primer is highly valued, with one listener highlighting how it brings disciplined investor mindsets to the subject. Additionally, listeners appreciate the book's historical accuracy and its straightforward perspective on cryptocurrencies.

Top reviews

Sara

Finally got around to reading this staple, and it definitely provides a grounded perspective on why Bitcoin and its digital siblings aren't just a flash in the pan. The authors take a disciplined approach to the subject, treating these tokens as a legitimate asset class rather than just a speculative frenzy. I appreciated the historical context regarding the 2008 financial crisis; it helps you understand the 'why' behind Satoshi's whitepaper. While some of the specific coin data feels a bit dated now, the underlying framework for analyzing protocol value remains incredibly relevant for anyone trying to build a diversified portfolio. It’s a well-written primer that avoids the usual 'to the moon' hype and focuses on long-term sustainability.

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Narut

This book is basically the 'Intelligent Investor' but updated for the digital age, offering a principled way to navigate the volatility of the blockchain world. The authors demonstrate an incredible intuition for the space, likely because they were involved long before the journalists started paying attention. I found the explanation of how value captures at the protocol layer instead of the application layer to be a total 'lightbulb' moment. Even if you're skeptical of the tech, the historical accuracy and direct approach to market mechanics make this an essential read. It’s a masterclass in how to stay rational when everyone else is losing their heads over the next big ICO.

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Ratchada

Ever wonder why certain tokens actually have value while others are just noise? This guide provides the most coherent answer I’ve seen yet, diving into the regulatory landscape and the historical significance of decentralized ledgers. It brings a much-needed sense of discipline to a market that often feels like a digital casino. I especially appreciated the case studies on Ripple and Zcash, as they show the breadth of the ecosystem beyond just Bitcoin maximalism. For anyone coming from a traditional finance background, this is the definitive starting point. It’s concise, well-researched, and remarkably insightful for a book written in such a fast-evolving field.

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Sudarat

As someone with a traditional banking background, I found the taxonomy of cryptocommodities versus cryptotokens to be the most helpful part of the entire text. Burniske and Tatar translate complex technological concepts into a language that finance professionals can actually understand and use. To be fair, the book does gloss over some of the more systemic risks like infinite supply through forks or the lack of legal protection in certain jurisdictions. However, the focus on asset allocation and risk management is a breath of fresh air in a space that is usually dominated by chaos. It’s a solid, analytical guide for the modern investor who wants to move beyond the basic headlines and understand the mechanics of the market.

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Charles

The chapter on portfolio management was the real standout for me, specifically how it discusses correlation with traditional markets. Most crypto content you find online is just a collection of tweets and Reddit threads, but this actually feels like a cohesive investment thesis. Frankly, some of the charts are a bit repetitive—we’ve all seen the Bitcoin price climb before—but the way they break down the utility of assets like Monero and Ethereum is quite clear. It serves as a great bridge between old-school value investing and the new digital frontier. I’d recommend it to anyone who wants to stop gambling on random coins and start investing with a strategy.

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Pakpoom

Look, the crypto world moves at light speed, but the core principles here regarding fundamental analysis still hold a lot of weight. Burniske and Tatar don't just push you toward the latest craze; they demand that you look at the developer community and the security models. I gotta say, the section on storing private keys and using wallets was a bit basic, but it’s necessary for a book aimed at a general audience. The prose is approachable and concise, which is impressive given how dense the subject matter can be. It’s a necessary anchor for any innovative investor’s bookshelf, even if it ignores some of the darker regulatory clouds on the horizon.

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Alice

Burniske and Tatar do a stellar job of stripping away the 'get rich quick' noise that usually surrounds this industry. By providing a clear framework for valuation, they empower the reader to think independently rather than just following the herd on Reddit. The book excels at explaining the difference between digital commodities and finished digital goods, which is a distinction most beginners miss. My only gripe is that it can be a bit repetitive in its praise for the underlying technology, and it misses some of the more nuanced arguments against deflationary assets. Nevertheless, it remains one of the most important books to gift someone who is curious about Bitcoin but afraid of the inherent risk.

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Prinya

Picked this up hoping for a deep dive into valuation models, but it felt a bit introductory for anyone who has been in the space for more than a few months. The authors tell you to read the whitepaper, which isn't exactly groundbreaking advice if you’re already active on exchanges. In my experience, the fast-paced nature of crypto means that several of the case studies already feel like ancient history. It’s a decent summary of the scene, yet it misses the mark on providing a truly 'intelligent' way to price emerging alts. While it’s balanced and well-written, the shelf life is limited because it lacks a deep dive into the real-world applications outside of the top three coins.

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Kai

Truth is, I found the first half far more engaging than the second half, which felt like it was filling space with basic investment advice available elsewhere. The 'blockchain, not bitcoin' debate is touched upon, but I wish they had taken a harder stance on the risks of technological displacement and the lack of legal protections. One cycle of returns is not enough to prove an asset class's permanence, and the authors seem a bit too optimistic at times. Still, it’s a balanced and well-written introduction for those who are just starting to wonder about that 'magic internet money.' It’s a mixed bag, but the good parts regarding historical context are worth the time.

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Chamnong

Not what I expected given the hype from the crypto-twitter crowd; there are just too many graphs showing numbers going up without enough critical dissent. The book focuses heavily on the upside while largely ignoring the devastating effects that hoarding could have on a currency’s actual utility. Personally, I found the lack of discussion on the legal risks and the lack of investor protection to be a major oversight for a book titled as a guide for investors. It feels like a book written to make people feel better about money they’ve already committed to the market. If you want a rigorous critique of the blockchain revolution, you should definitely look elsewhere.

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Questions about this book

The authors argue that cryptoassets are a new asset class: a commodity made of software plus a currency with a limited supply, recorded on a blockchain that is very hard to cheat. They see a rare opportunity for investors, but only for those who understand what they buy, avoid crowd speculation, diversify, store their private keys safely and check each project’s white paper and fundamentals.

A hot wallet keeps your private key on something connected to the internet, such as the cloud or an online device, so you can reach your coins easily but face a risk from hackers. Cold storage keeps the key offline, on a PIN-protected hard drive or on paper in a fireproof safe. It is much safer from hackers, though slower to use.

Start with the white paper, which should be specific, free of typos and clear about what the asset does and how it beats rivals. Then check its decentralization edge, the experience of its developers, how engaged its community is and whether its issuance model is fair. Too much currency for insiders, or too large a starting supply, are warning signs.

They argue most cryptoassets have zero correlation with traditional markets, meaning events that move stocks and bonds tend to leave them alone. Adding some to a stocks-and-bonds portfolio could therefore protect against a traditional market crash. They even suggest crypto could rise in such a crash if frustrated investors move money out of stocks.

Trading pair diversity is the number of fiat and crypto currencies that can be exchanged for a given cryptoasset. The authors treat more pairs as a sign of a stronger, more dependable asset, especially pairs with government-issued currencies such as dollars or euros. They suggest checking a coin’s pairs on the website CryptoCompare before buying.

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