If I was talking about estimating the value of a USD compared to the ILS i would probably check the prices of specific items in both currencies, the government's policy on exchanging money and managing their currency, maybe have a look at the country's GDP and natural resources.
But how is it actually done?
How would you apply this to BTC?
It seems to me that currently there is almost nothing that can be purchased directly for BTC and most people exchange it for USD.
Meaning the actual use of BTC is something like: earn USD -> exchange for BTC -> send BTC to somebody else -> exchange BTC for USD -> buy products/services.
It seems that a lot of the evaluation of the value of BTC comes from speculations about the coin's future rather than its current use/value.
What are your estimations of the true value of 1BTC (i.e. its value now, without speculating about the future)?
