Frequently asked questions

Aquarian Standard methodology

What each line on an asset page is there to measure. Open a section for the full write-up. For comparison and education, not a personalized buy, sell, or size recommendation.

Money · seven properties

Is it money?

The seven monetary properties as one package: medium of exchange, unit of account, portability, durability, divisibility, fungibility, relative scarcity. This lens also scores privacy and whether the setup still makes sense on a long horizon.

On the asset page, this is scored as

Sound money properties

Why we score sound money properties

We use the seven-property test: medium of exchange, unit of account, portability, durability, divisibility, fungibility, and relative scarcity. All of them. Not five out of seven, not "close enough." Strip one out and you change its nature- it becomes a collectible, a barter goods, or someone else's promise. "Store of value" is not real monetary property.

Further reading

On the asset page, this is scored as

Financial privacy

Why we score financial privacy

Digital money is not neutral. If your transaction history is public, you are in a different fight than with metal in your hand. Optional privacy is still surveillance, because a traceable history breaks fungibility. Fungibility protects users by making it impossible to distinguish one coin from another. Privacy is a cornerstone of sound money. Without it, the asset is not money.

Further reading

On the asset page, this is scored as

Future resilience

Why we score future resilience

We don't care about short term price movements. We care about whether an asset has the possibility of still being here in 20, 50, or 100 years from now. And that depends on a number of factors including whether a crypto network can plausibly survive, whether a physical asset has shelf stability, and whether it will still be in demand into the future. We're not looking for a guarantee, we're looking for a possibility.

Further reading

Currency · the user experience

How well does it work as a currency?

Custody, everyday access, and whether payments can be blocked or filtered in the middle. The money-versus-currency split is about user experience friction, not a price target.

On the asset page, this is scored as

Ease of self-custody

Why we score ease of self-custody

If an asset is difficult to hold yourself, then it becomes a risk to your portfolio. There are a number of factors to consider including how easy it is to store, how easy it is to secure, and how easy it is to set up and use on your own.

Further reading

On the asset page, this is scored as

Retail accessibility

Why we score retail accessibility

Currency is thing you actually use to spend. It's all about friction: getting in, getting out, and how easy it is to obtain. This refers to online exchanges and brick and mortar and online stores/dealers. We do consider DeFi as well but it's not quite as popular as traditional retail yet.

Further reading

On the asset page, this is scored as

Censorship resistance & settlement

Why we score censorship resistance and settlement

Fundamentally, can you transfer the asset without anybody's permission? This is extremely important to us because it ensures your asset is truly yours. If it back be locked up, frozen, tainted, or otherwise compromised, then we have to ask ourselves why we would hold it in the first place. This isn't just about cryptocurrencies, gold and silver are also affected by this.

Further reading

Investibility

Can it be invested in?

This represents all the monetary factors that make an asset investable. It's not financial advice, it's is a simple test of how an asset actually lives in the world. Everyone should have their own criteria so this shouldn't be construed as investment advice- it's just our opinion based on our own research and experience.

On the asset page, this is scored as

Investibility

Why we score investibility

Investability refers to how easy it is for someone to actually put their money into something. This includes different methods including physical and online retail, exchanges, DeFi, and other ways to get your hands on the asset. This is about whether the asset is actually investable in the real world- not investment advice about whether it's a good idea to invest in it. It's a simple test of how the asset lives in the world. A good way to think about this is considerting something like uranium metal- people typically only invest in it through derivatives because if they had it in hand, not only would it trigger some legal issues (lol), it's next to impossible to sell in person and thus its investibility score would be low.

Further reading

On the asset page, this is scored as

Liquidity

Why we score liquidity

An assets liquididty is its lifeblood... it's how easy it is to get in and out of the asset. This includes the depth of the market, the ease of trading, and the time it takes to settle. It's not about the price, it's about how easy it is to move the asset itself. Low liquidity means it's harder to move and thus more risky to hold because it can trap you in a position you can't get into or out of. Higher liquidity means it's easier to move and thus a potentially lower risk to your portfolio. Obviously, there are exceptions to this so it's important to consider the asset in context.

Further reading

On the asset page, this is scored as

Wealth sovereignty

Why we score wealth sovereignty

If an asset preserves your wealth sovereignty, then it has no middlemen, no gatekeepers, no government interference... you own it, you control it, you're the one who moves it without permission. If it does its job, then it protects you and your wealth autonomy. This is how real money works.

Further reading

On the asset page, this is scored as

Counterparty & intermediation

Why we score counterparty and intermediation

An asset does not always become yours in one move. A shop, a business, a trading site, can sit in the middle between you and the asset. The more layers between you and the asset, the more risk there is that the asset can be taken away from you.

Further reading

Disclaimer

Scores are opinions for education and comparison. They are not investment, tax, or legal advice. Do your own research and speak with professionals when appropriate.

All Aquarian Standard assets