Topic: How do you assess the value of Bitcoin? (Read 690 times)

Those information can be found in coinmarketcap.com DCAing is often what people do when you have less money to  invest. So every time they receive a paycheck, they  buy a fraction of BTC most probably from an ATM. Or exchanges which is more convenient.

BTC had touched $25K today and then back to $24K, you can be assured already that it will also go back up to more than $25k soon.

Before investment of cryptocurrency and Bitcoin particularly some body supposed to know the actual volume you needed for investment, is good to know the price of Bitcoin before you can invest for cryptocurrency so. I will like to understand why people like know the price of Bitcoin before investing for it, so that the profit will be known.

I have a very peculiar way of evaluating the value of bitcoin, I know that all markets have bearish and bullish cycles, that in every market there is a way to determine the best short-term behavior with technical analysis, so as bitcoin is now About to jump to at least $25,000 if things in the world go well, for me I take it as if it was a bull market where I can go with the trend, and I think the price is very likely to grow in the next few days.

I agree, when bitcoin goes higher again, there will be a drop too but that drop would be higher than where we are right now. So, I do think that people who buy here will have only one chance to do it, and if they do it right and get as much as they can afford to, they will be pretty happy about it.

All the people who think that there will be more time to buy bitcoin at these prices later on, will be upset to see that bitcoin never comes back to these prices ever again. This is why I am trying to buy as much as possible every time I get my salary, unfortunately it was a hard month in July, but hopefully in 1st of September I will continue to buy some more.

Your idea is not bad . but here i think it is always better to buy bitcoin in dip .and now is the good time to bought bitcoin and hold long time. i didn’t think people can get  this opportunity in the future days. because i think bitcoin price will not drop bellow 50k after bitcoin pump and make new ATH 100k .

You must understand to do analyses and understand bitcoin chart for buying bitcoin in the right time. i am buying bitcoin when btc price drop . i always try to buy btc in dip but when i saw bitcoin are crashing then i immediately sell btc even i loss my some investment . and buy again when crashing is end and btc price like stable .

It is a subjective thing and each person will have their own way of deciding when this is a good idea or not, there are many that just buy bitcoin whenever they have some cash available, others use DCA, others prefer to use some technical analysis to decide when it is a good time to invest in bitcoin, while others just use their instincts to do so, now if you are planning to hold your coins for the long term almost all methods will produce profits, but if you want to trade then you will need to use TA almost exclusively to take the decision of when to buy.

Whenever I invest in bitcoin i do look for the prices because that will determine the amount of coins I would get but DCA is more of strategy where you are investing some amount at fixed intervals no matter what the price are for example you plan to invest $100/month then you can do it any price keeping your accumulation phase long until you reach good portion of btc with you.

I don't have an answer to this question, I don't know how to value Bitcoin, but using traditional market capitalization metrics to measure the value of a cryptocurrency is inappropriate.

DCAing, as long as I am concerned, is the best buying strategy for me, it doesn't matter what the price of Bitcoin is at the time I want to or decide to buy, I just DCA~
That is, if I have $100 set aside to buy Bitcoin, I first of all buy $25 dollar worth of Bitcoin first, and as price of Bitcoin continues to decline, I will keep buying $25 worth every time my buy target price is hit until my $100 is exhausted.
And speaking of setting buy target price ~ how I manage to choose a buy target price depends on many factors, but the most important of those factors is ~ how severe or mild the decline in price is often most times, determine what price I set as my buy target.

It was before when people do rush to invest into Bitcoin. But since they have notice the production and the escape root of investing into cryptocurrency with that having lost. What they do now is that they investigate and the watch over of a particular coin they want to invest for some period of time to know the credibility on such particular coin for investment so that is all the many of the investors do right away in order to protect their money from losing or decreasing from the high amount they bought.

Many people start investing with their entire money while investing. I think it's not for logic but to be able to invest step by step is much better for me.I just accept your decision as good. You may invest fifty percent to 70 percent now that the market is down. Later, if the market is down again, there will be more invest If you invest in this way, I think that investment will definitely be successful.

If you are doing DCA then probably you shouldn't even think about price at all. Just collect the Bitcoin as much as you get with the capital you have and called it a day. Although buying it at low would give you reasonable amount instead of just buying it right away but the way of price works, you probably don't bother with that if you are doing DCA in next few years.

Sometimes i will agree with you in some extent that Bitcoin don't have the actual time to purchase it. I believe from my own theory that the best time to buy bitcoins you want to invest or hold for long time is during the time of bearish market so that you can make a potential profit during your time of long stays.

I think the price tag is 20 thousand.$ is exaggerated, but in today's realities, many say that the mark is 20 thousand. $ this is the bottom, I'm sure bitcoin is far from the bottom, because I remember the situation when it reached $ 3,500 and everyone said scam with one voice... and was wrong, so it's hard to predict bitcoin forecasts, but I think maybe we'll see the price of bitcoin below $ 20 thousand.

If the source of your funds is from the bank and you are able to pay off the loan, it will not be a problem. but is it worth the return, because if you are not ready for it and the price suddenly drops below $20k you will get some reduction in the value of the bitcoin. I also believe bitcoin can reach 100k in the coming year, but are you strong enough to hold it in the long term and are you going to add to your assets again by borrowing money from the bank again?

Yes of course, because you can't possibly buy a bitcoin without a money with you but first you gotta have them in your hands. Better if we buy btc once we still have a money and we shouldn't say that we will only invest later because we can use the money in other things which aren't that beneficial for you in the long run. Anyway, what you are doing there is called dca.

It's when someone allocates some money per month without really minding if what is the price of bitcoin is, because their only aim is to stack more bitcoin and then sell them one bitcoin reach a really high price like 100k or more. You shouldn't under estimate 20 usd but that's already a good amount and there are even some that invest lower than that.

It depends on the situation when we should accumulate. Everyone has different thoughts. A lot of people still buying and a lot of people waiting to fall in the price. So based on the price range Bitcoin playing around with, you have to set a target to accumulate. Also, you should have targets of sale though you intend to hold for a long time. Basically, I accumulate when happening massive dump and dump again. Because pumps happen after every dump. I dare to accumulate if single dump.

I think buying btc bellow 25,000$ is ok for everyone . i bought btc at the price of 20k usd and already some weeks ago and i bought it by borrowing money from bank . i believe bitcoin will hit 100k usd in the coming years .

Since bitcoin is not a ponzi scheme or any kind of fraudulent attempt, it basically can be bought anytime ^{[P2P or on any reputable exchange].} I don't think it will be a problem if you really want to keep those bitcoin as a long term investment.

Okay, buy dip and DCA, but actually these are some ways to get low price and collect more. I can buy for $20K, while I'm also willing to buy above. But remember, invest as much as you can afford to lose. This will help you think about it as simply as possible.

For me the value of bitcoin is where I would start considering to sell some coins. Right now it's a bit hard to imagine such a price level, but I know that I wouldn't sell any coins below 100,000 USD. So my intrinsic bitcoin value is above all the past ATH, even if it takes years to reach such levels again. For the last several months I have been buying bitcoins without worrying to much about the price. It doesn't really matter to me if the price was at 30 or 20,000 USD. My purchases usually happen at the end of the month from money I could save. Nobody knows how long the bear market is going to last. I would recommend anybody to buy as long as the coins are cheap.

I think DCA is much better to use especially in this period or if you were just new in the market. Besides the marketcap that bitcoin does have, it will certainly increase its value over time, so using DCA as your strategy is not a bad idea compared to relying on your gut which is kinda vague and has no certainty. To be honest, if I only knew that Bitcoin would have this much growth then I might not have spent some of my Bitcoins before.

Dollar Cost Averaging (DCA) is a concept not everybody understand, and that's why those who do stand to be at advantage to the mere Bitcoin hodlers. It is a strategy that requires one to have good knowledge about how to read charts and predict price movement. I once tried it back then when I came new into crypto, and it is a strategy that requires one to have enough patience if you really want to make profit and also bear in mind that our prediction at times may not go as planned but it's quite okay.
One strategy I have noticed to work well with DCA is you placing "limit order" to either your buy or sell order, or using a "Stop loss & Take profit" when the price reaches a certain amount

when I decided to buy bitcoin where when my finances were ready, like now I think it's the right time to pay for buying bitcoin in a month I set aside funds to buy bitcoin even though it's only 20$ but I'm sure when the market improves I can benefit from my investment

The best is if you don't have to buy and invest in bitcoin and you can find other ways to get it. We are quite privileged on this forum to be able to earn it by being active in discussions and writing about the ecosystem. That's one way you can get it.

I would advice anyone who have sought-after skills to do some freelancing work and get paid in bitcoin. Whatever you can do that has a market, accept some bitcoin for it. That's the beauty of this coin. There is nothing holding you back, just put your mind to it and use your imagination to come up with something of value that you can create, sell or offer.   

Even till now many people don't understand the concept of DCA and how to go about it. So, I didn't have this DCA concept earlier just like you, but there is one thing I do presently which I am very comfortable with. In as much as the price if bitcoin is below $30k, I consider it to be at the low. So, I do not bother where the price is exactly, but every week I buy with certain amount which is fixed and steady. I think I will continue this way till the end of this year and if possible till 2024/2025 during the next bull run. By then my profit might be massive, but if it turns otherwise it's still the consequences of the risk.

What year was the $40K price tag for? because for this year I think it's very short time for Bitcoin in terms of reaching a price of $ 40K although it is still very possible and not impossible to happen. I'm just a little hesitant because now the Bitcoin price is still below $25K and the distance from that price to $40K is a very big thing even though there is a possibility for Bitcoin to reach it.

If you are new to bItcoin then DCA is the most preferred. There is no perfect time to buy now. Every down move is a buy signal and with DCA you can get several entry buy points but this will mean a steady glue to your chart. $25k is not even an advisable buy time except you are on a long term goal. For short term investment there will always be a fall in price even below the current price

Bitcoin’s value is derived from a variety of different properties. At the end of the day, the value of cryptocurrencies and fiat currencies comes from “trust.” Money will always have value as long as society believes in the fiat currency system. The same is true for Bitcoin: as long as users trust it, it has value, but there are more factors to consider.

I value bitcoin base on the percentage of dominance in the whole market.Base on how scarce and disperse bitcoin gets in the space and across more wallets.value base on the amount of bitcoin on exchanges.value bitcoin also base on the amount of stable coin in the market.also base on the amount minable per day, the lesser it gets the higher the value.

The worst crypto bear market is over, and right now the price is starting to increase slowly. A few weeks ago a lot of people bought Bitcoin at the price of $19k, of course they have made a big profit. But this is not over. I think Bitcoin will hit a price of $40k. Many famous entrepreneurs talk about Bitcoin by gesturing to buy.

so it's not an investment that you can keep, because from the start you only want to use the bitcoin for personal needs that are really needed.
Are you not trying to trade the bitcoin proceeds from the signature campaign so that its value is getting more and more.

I've even raised some bitcoins for the long term from the signature campaign results and for other purposes can use the salary from other jobs.
I value bitcoin more as an investment for trading.

I don't buy Bitcoin. I get some (like from a signature campaign), and try not to sell if I can avoid selling. Sometimes I can't because I need the money for something, and I'd be happy to use Bitcoin directly in those cases, but it's usually impossible. When I need it, I, of course, sell regardless of the price. If I know I'll need it within a couple of months and I suspect the price can get worse, I can sell a bit in advance. To me, Bitcoin is more of a kind of money than an investment. I wish I could use it more like money, but the options are still very limited.

Yes I also sometimes do like that in buying bitcoin, and I quite feel the results of what I do. If you are a long-term investor, you don't have time to think about buying. But if we are investors who take profits with near-term vulnerability it will be more difficult. Because we are required to enter at the right time.

I think that if we are going to buy bitcoin it depends on the situation, and also we have to be good at analyzing the price of the bitcoin we are going to buy, because even though the bitcoin price is above 25,000 dollars, if for example the predicted future price will be more than 25000 dollars, it is better to buy it . sometimes because we don't dare to buy, then we will miss good opportunities, and end up not getting profits because we don't have the courage to buy.

Bitcoin is a digital assets where many companies and individual trading on daily basis, which some set of people invest by holding to a point of 10x profit or more to sell off, which waiting for their target to buy back at Chip rates, so doing that buying process is an individual difference and target on the entry point for a profit, having said that you need to make your research and have a target on your entry point to buy.

DCA is generally better for long term investments. I mainly focus on long term investment rather than short-term trading.

These two are invalid.

You can't base it on the amount of bitcoin on exchanges because only a few known addresses of big exchanges are monitored. We don't know the total amount on exchanges. We only estimate that it's going down because the coins on big exchanges are decreasing. This value can change overnight and you won't be able to react like when Do Kwon dumped it all.

Stable coins can be made out of thin air if needed. You're going to value bitcoin based on a decentralized coin that can appear and disappear from the market at any moment?

Well if you have even a moderate time preference then there is never a bad time to buy bitcoin. Over time bitcoin always increases in value, it’s a deflationary asset, this is what it was designed to do. If you really want to time it well though then you do the opposite of what the masses do. You sell some when everybody is euphoric & Grandma’s are buying. You buy when everybody is crying & worrying, when mainstream media is saying bitcoin is dead etc.

1. I value bitcoin base on the percentage of dominance in the whole market
2. Base on how scarce and disperse bitcoin gets in the space and across more wallets
3. value base on the amount of bitcoin on exchanges
4. value bitcoin also base on the amount of stable coin in the market
5. also base on the amount minable per day, the lesser it gets the higher the value

DCA is an overall investment method that is safer than buying and selling at once, has lower risk and lower returns, but still offers the opportunity to profit from market changes.
however you also need good skills for this too, deep technical analysis is a must.
I have a regular job and have a monthly salary, and I always set aside about 20% for bitcoin purchases and I also always wait for the right time to do so considering the movement of bitcoin only increases slightly then decreases again.

agreed metrics like that one along with the mining cost window explained in my previous post are 2 main good sources to see when prices are deemed cheap or premium as an overall planetary price:value indicator

ofcourse. speculation is a funny thing.
japan has the highest electric and so even when prices were $30k-$60k they still seen bitcoin as cheap
where as kazahkstan seen anything above $30k last year as premium(time to sell)

but for a general world wide idea of if a price is leaning towards a buy sentiment or a sell sentiment. the metric you used and the cheap premium of all mining costs. is a good world wide sentiment finder

Deciding to buy Bitcoin of course at the lowest price, but because it's uncertain then I use the DCA strategy, maybe that's what many bitcoin investors do.
DCA is buying bitcoins on a regular basis, regardless of weekly or monthly prices, how do we decide, we will definitely get a good average value from buying the DCA, but if it is understood use what you can afford, I myself am DCA become my regular purchase with weekly about 20% of my income.

Personally?

Bitcoin is ALWAYS a buy.

If I have any funds available that are not already budgeted for some other expense (utilities, debt service, asset acquisition, entertainment, etc), then those extra funds are used to acquire bitcoin as soon as they are available.

In the short term, the bitcoin exchange rate is far too random and unpredictable to ever be able to consistently choose the "right" time to acquire it. Sure, you might get lucky and get it a bit cheaper if you wait, but you also might miss out on some huge growth and never see that lower price again.  Since, in my opinion, the long-term direction is for the buying power of bitcoins to increase, any delay only increases the chances of missing out. As such, in the long run, attempting to wait for a better exchange rate will only hurt your overall position.

There is a very strong human tendency to think we see a pattern where one doesn't exist, and to believe we can take advantage of that non-existent pattern for personal gain.  This has been demonstrated successfully in experimentation many times. In one example a human is asked to predict which of two events (for example one of two different lights illuminating) will happen next.  When the experiment is set up for the events to happen completely randomly, with an 80% probability of one event and a 20% probability of the other, the test subjects believe they see a pattern (which doesn't exist) and they use that pattern to try and occasionally choose the 20% event and do better than 80% success rate. The result is, on average, humans guessing the correct event only about 68% of the time.  Meanwhile, when the same experiment is performed with animals (such as rats), they quickly learn (end up trained) to consistently choose the 80% event every time. As such, the animal making the reliable choice to continuously choose the option with the higher long-term average consistently beats the human that is trying to time his decisions against a random process.

Trying to time an unpredictable market is similar.  You're going to feel like you can get it right often enough to come out ahead of those that just consistently get what they can when they can. You're going to remember the times when you got it right, and you're going to convince yourself that the times you got it wrong aren't significant or that you can learn from that event how to predict it better next time. If the failures don't devastate you and cause you to quit altogether, then the successes will fool you into thinking you're coming out ahead. Either way, in the end, there's a VERY HIGH probability that you're going to end up with less bitcoin than you could have had if you had simply purchased what you could whenever you could.

In general, those who are planning long-term investments in Bitcoin must be concerned about the price of Bitcoin. They often get stuck in the dilemma of buying bitcoins. I think first of all an investor should buy bitcoin with risk. Since Bitcoin is at its lowest level in several years, DCA is particularly appropriate at this time. Bitcoin may slowly move higher again so it is better to $19000-$25000 and hold it.

Currently Bitcoin is trading under its realized price. You can use the live chart from https://www.lookintobitcoin.com/charts/realized-price/

Assume the chart is built with correct algorithm, it shows a signal that we are in a good period and have good price to accumulate Bitcoin. When people realize it, Bitcoin will be bought up to above its realized price. Consequently you will get profit with your bravery to invest, patience to hold it and smart to take profit at right time.

Don't forget that beyond the realized price, we will have a next halving in 2024, in around May 2024. It's less than 2 years from now.

The best thing to do used to buy Bitcoin now that the price is low and who would for long time. Because if you are waiting directly when Bitcoin will bump before you can buy cryptocurrency you might not monitor the exact time all cryptocurrency Bitcoin because you must not before you can be able to interpret the chart of cryptocurrency graph before you can get the exact target of when Bitcoin will rise. It is only the traders who can predict and the falling off Bitcoin and buy and also make profit within that particular time.

First you need to understand mate that here we are talking about Bitcoins.
Secondly see the marketcap and popularity of the coin.
And then finally conclude that Bitcoins are very much value and due to its large marketcap, the price of the coin will definitely rise.
So as of me, whenever I have some money to invest, i just buy as many Bitcoins as I can. I don’t look at the price. As Bitcoins are for long term. If I buy now, then definitely after 2 years I will be get 3 times the invested amount.
Rest is up to you to decide OP.

Buying weekly is a example of DCA and I wouldn't call it a stupid idea as it has helped so many people get over the fear of taking a big leap into a high risk venture like Bitcoin, by breaking it down into smaller, achievable targets which they can easily reach without any pressure.

With DCA, you don't need to force yourself to do anything.
If your salary is xxx amount, and you can spare yyy amount every week, bi-weekly, monthly, bi-monthly, quarterly etc. Then you exchange that amount you can spare for Bitcoin. To avoid laying multiple transaction fees, you can spread out the buys a bit more.

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Of course, during periods like when the price spikes up alot, you can hold on a bit from buying and when it dips, you can buy more.
Waiting for more preferable markets between the above points (spike and dips) might not be very effective.

DCA is the best.

Honestly, if I've known the DCA strategy when I was newer then I think I've got accumulated a lot that would have changed my life entirely. Still, my life has changed wholly because of having bitcoin as my investment.

But it will be a different level if I've been doing DCA since I've started. Although, it's not too late and we'll never know how high bitcoin will be for the next years and sets of bull run.

My moto for many years was to buy on a weekly basis, with whatever disposable cash I had at the end of the week.... but I figured out that it was a stupid idea. You force yourself to buy constantly, because you want to horde more and more bitcoins like Mr Scrooge... but you making a big mistake.

The golden rule has always been to "buy the dip" .... so if you just buy on a weekly basis... you are not buying the dip. I now push my weekly disposable fiat into my exchange and I wait for the dip.... then I buy like crazy! 

using reasonable recent asics (generations post 2020)
work out the mining costs of the worlds regions. from cheapest to expensive
(~4cent to 38cents)
split the hardware cost over 2 year ROI to get a per btc COST

and that cheapest to expensive window becomes the range that the price normally sits within.
(window is somewhat stable and grows. and price within window is more volatile and unpredictable)

then simply look at where this weeks price is. to look at if you are in the cheap area of the window or the premium expensive part of the window.

then judge from there whether is a good or bad time to buy
EG section it off as like a green, amber, red where you invest 100% at green 60% at amber and 20% at red)

even for those DCA people. if you are just regular monthly purchasing. atleast try to see if the hour you do the purchase is at the weekly/month high or at a better time of day/week you can get maybe a better deal.

the closer your DCA for the month is to the monthly high, even if you still just want to buy for that 'incase this is the last chance to buy before it breaks resistance and rises more fomo' adjust how much you want to buy in to reduce risk. EG dont throw entire months excess income into a FOMO . just put 20%-60% and then put rest in later if the speculation dies down and price comes down just a little bit. that way you can maximise opportunities better

One of the biggest things that I have done in the past month is to sell stuff that I don't need (like a yard sale to get rid of unused stuff) and then put that money into bitcoin. I started this because I ran out of fiat to sell for bitcoin so I had to sell other stuff and it's been a good month since I converted goods I was not using to bitcoin that also freed up my space.

I will start with the fact that Bitcoin value is different (and imho way bigger) than its price.

Now, to your question. I don't really buy Bitcoin, my accumulation "scheme" is to sell less or more from the coins I earn (from signature campaign or other tasks).
So I sell less, pretty much based on my gut feeling and the needs of my household (for example last week I couldn't save anything, but a couple of weeks ago I've saved the full amount of the signature pay).
Of course, in crypto winter I try to save more.

Since we are in bear market, I use the 70% of the amount left from my monthly salary to buy whatever bitcoin's price at that time, while I save the remaining 30% for further dips below $18k because I don't believe we've already hit the bottomw and we are just at early phase of bear market  Bitcoin has been consolidating at $20k-23k for few days now so accumulating at this price is not a bad choice for me.

Under dollar-cost averaging (DCA), the investor divides the total investment amount and purchases a target asset in intervals. source
If I would tell my DCA , I do both trading short and long-term.Generally I look for good dip for long time investment.  Already invested a few times for my long time investment, to say that I had no idea that Bitcoin would drop below 30k like this .I have invested a few times in this way Although this brings me to 1/3 of my total ath but I am optimistic that after one or two years I will be able to earn a good profit.  On the other hand, for short term investment, I have kept a specific fund separately and do short term trading by selecting daily candles.  But I don't have any specific fund allocation for long term investment, if I have money in hand I invest according to the dip.

Lol that's obviously a lot easier said than done. There's a reason why trading in general isn't recommended for most people, and there's a reason why most people lose money trying to get in and out of positions.

Decide on what asset you want to invest on, DCA(or possibly lump sum if you don't panic), then just be patient.

It's a lot less bothersome to dca or buy lump sums at random times.

If you're aiming to buy at a price it's normally best to invest in something else and wait for that price to be reached (but if it doesn't make the news you either have to keep checking the price every few days or have an alert set up - and then hope the alert works).

Buying dips for a lot of markets (typically stocks - definitely not forex) works better than dcaing but it can be a lot more costly too (time wise) and I don't think the gain is enough to make it worthwhile (especially in tech/crypto markets).

You only need to learn how to ride the wave... any moment that you feel bitcoin is going to bump, then is a good moment to buy, and if you see it crashing, then sell and take some of your loss.

Is not about the bitcoin value, is about the market movement because if you buy bitcoins at $100k and it goes up to $1M, then you will have a huge profit even if the price was already up.

I personally DCA, but I also have a bit of money on the sidelines for buying those huge blackswan-ish flashcrashes; and then a really really small allocation for trading when I'm bored.

With most people that don't watch this space really closely though, seriously just DCA. I know trying to time markets is really exciting because it somewhat gives you an adrenaline rush, but most people will end up with a lot less(or even a loss) trying to purely time the markets.

Hi all,

How do you (personally) decide when Bitcoins are a buy? - gut feeling, just DCA to a certain amount, only buying below 25,000 or ...?

Thanks!