I am new to cryptocurrencies, and I would like to explore how an analyst might compare the "health" of two coins, for example, Bitcoin v. an altcoin.
For a company that issues stocks, analysts look at its accounting details (e.g. book-to-value, credit spreads, long-term debt) and equity returns.
For a foreign currency, I fathom it is almost impossible. People question the demise of the US dollars, but it retains its value in the foreign exchange market. One could look at the accounting details or balance sheets of the US Treasury or Federal Reserve, but I don't think these are as helpful as the Fed's FOMC announcements in explaining the USD foreign exchange rate volatility.
For Bitcoin or any altcoin, if you were an analyst,
(1) How would you define the (accounting if there is any) variables that drive the performance of the coin?
(2) Are these observable (e.g. thus data-collectible) or not? If not, are there good proxies?
