Topic: How to value bitcoin and cryptocurrencies? (Read 409 times)

Its also depends on the users demand I mean about the traders demand,  for example if a trader wants to buy more and the buying rate increases in the bitcoin then we can see the prices of the bitcoin has an increase in it. And also we see the rate is high at that time and users see the bitcoin prices has been at a better rate.

Also same in the case with Ethereum,  but I'm not sure about the Bnb prices ,  i think it may have another criteria for getting a rates available.

The most important thing that creates value is demand. If there is no demand for something, it cannot be valuable. At the same time, supply determines the price to a significant extent. The greater the demand, the higher the price. In general, this is how it works, but in the crypto market, as in the economy, the operation may not occur exactly depending on the supply-demand balance. Apart from this process, there are many factors that affect the price. We live in the age of technology and we can learn everything that is happening in the world instantly. Many things such as who the investors in the market are, speculations about the market, advertisements, technology are among the factors that determine the price.

The usage areas of cryptocurrencies are also an important factor for their value. Elements such as projects, teams and plans are also elements that can increase its value.

Yeah and all coz by Supply and Demand  and I see that this is what explain it will thanks for this mate .

same as what happen in Shitcoins , the manipulators buy more and more so the prospected victims will ride the flow and after such time , it will be dumped by selling the big portion and that turns victim into loser.

You have mentioned it completely , so I think there is no way that OP needs to read more if he values your post here.

thanks also .

There are multiple factors at play in assigning value to Bitcoin. Bitcoin's features are to be considered, of course. The process of producing Bitcoin will have be considered as well. It's not just Bitcoin's decentralized system and limited supply that count but also the fact that a coin costs energy and technologies to produce. Another factor is its relevance and alternatives. Are there other options for those who wish to enjoy the benefits provided by Bitcoin? Is there an urge for people to get into Bitcoin? I think these are all factors, among others, in giving value to Bitcoin.

op If you want to make your life successful with Bitcoin, you must keep some things in mind. You have to choose first whether you will invest in Bitcoin or Alert coin. If you invest in Bitcoin then you will take time and more money if you invest then you will get good profit from here at some time. Investing in bitcoins can't be done in too much of a hurry and can't be taken too soon. You have to spend more time checking the market and investing. If you trade like this you will be successful.

As more people become interested in Bitcoin, it increases the demand for Bitcoin in the market and the price tends to go higher. This gradually builds stability and trust in the market. A commodity will be highly valuable if its quantity is fixed. Since Bitcoin 21 million is a fixed number, its value will continue to increase day by day. At some point, the supply and demand of Bitcoin can be fundamentally disrupted, as it is known as a cryptocurrency. The delivery process is stable and it is always changing. Bitcoin's value or supply demand may increase due to various factors, such as market volatility, demand, international growth, financial events, government policies, and the nature of blockchain technology.  Bitcoin facilitates secure, anonymous and independent transactions and keeps personal information safe. After all, Bitcoin is so valuable that today we are writing, reading and learning about it.

Right I agree with your assumption, because on the other hand how can we judge if we have never tried it at all, therefore as you said if we really want to make an assessment then the first step is that we have to try it first, if you want to feel then you have to be involved in the activity, and for the problem of the impact I am sure one day you will be able to judge whether it is in accordance with what you expect or vice versa.

And yes for the bitcoin problem honestly if we want to see or know whether bitcoin will go back up or not one of the ways we can do is to look at the history of its movements in the past few years, maybe 5 years ago there will also be some people who doubt and assume "whether bitcoin will go up or not" and it is proven that now bitcoin is experiencing a much higher increase than a few years ago, that's one assumption that is quite reasonable in my opinion for a beginner who is trying to convince himself in terms of bitcoin accumulation, and as I said above with you looking at previous movements then I think it's easy enough for you to know the potential of bitcoin in the future. And if indeed you already believe enough then you can start, of course for the beginning with a modest budget (small).

The best Way to Value is to buy Everything you can and Wait for the price to grow Because it is very certain that the price will go up and it Will go up but I don't know when , so the best way to Value this is to have it in savings mode because It is Known that this asset is the safest in the world, I prefer to buy bitcoin than to buy gold, because for me the things for the best investment have to be about bitcoin, that is why every time one has money left over but There is something good about buying or better is buying bitcoin, no one will give that Recommendation unless they want you to do well in life , so Every time a friend tells you to buy Bitcoin , then listen to them ,  that Person Does love you.

Valuing Bitcoin and cryptocurrencies is a complex process that involves several key factors:-

Market Demand: The price of cryptocurrencies is heavily influenced by market demand. Factors like adoption, speculation, and overall interest can significantly impact valuation.

Utility and Use Cases: The utility and use cases of a cryptocurrency play a crucial role. A cryptocurrency with a clear and practical use in the real world is likely to have higher value.

Scarcity: Bitcoin's scarcity, with a limited supply of 21 million coins, has a substantial impact on its value. Scarcity can create a sense of value and potential long-term appreciation.

Technology and Security: The underlying technology and security of a cryptocurrency are vital. Strong fundamentals, secure networks, and efficient transactions contribute to higher valuation.

Regulation and Legal Framework: The regulatory environment can affect the valuation of cryptocurrencies. Clarity and acceptance of cryptocurrencies by governments can boost confidence.

Competing Assets: Comparing cryptocurrencies to other assets like gold or traditional currencies can provide insights into their relative value.

Network and Community: A strong and active community can enhance a cryptocurrency's value. It can drive adoption, development, and support.

Market Sentiment: Sentiment in the crypto market can lead to price volatility. Positive news and sentiment can drive prices up, while negative sentiment can lead to declines.

Adoption and Merchant Acceptance: Wider adoption and acceptance by merchants for payments can increase the utility of a cryptocurrency, positively impacting its value.

Technology Upgrades and Forks: Technological advancements, upgrades, and forks can influence a cryptocurrency's value, especially if they improve scalability and security.

Speculation: Speculative trading and investor behavior can lead to price fluctuations. Traders and investors often use technical and sentiment analysis.

Economic Factors: Economic indicators and macroeconomic events can also affect cryptocurrency values, especially when they impact the broader financial markets.

In summary, the valuation of cryptocurrencies involves a combination of fundamental and market-based factors. It's important to conduct thorough research and analysis while considering these factors. Keep in mind that the cryptocurrency market is highly volatile, and prices can change rapidly, so it's crucial to stay informed and exercise caution.

Demand.
Let's say that all factors are there people are optimistic about it and there's actual interest from everyone. If there is no demand, all of the basic factors will also be useless. Because from the demand, the money is flowing and if there's no money flowing as there's no demand, then it shows that there's no interest. But since the money is there the interest, and the demand is there, that's where the other factors are also being built next to it. And that only shows if there's money on these projects and cryptos, they will likely be just homework of a high school student that is good to be saved in the internet but without use case, no monetary and economical value. And the tandem of demand is supply, we have the law of supply and demand and from there, you'll get to understand the economics of everything and even cryptocurrencies or Bitcoin alone.

Each asset's value depends on supply and demand. And value doesn't always depend on price. For example, if you create an altcoin and set a price of $1, if there is no demand for your coin, then there is zero value. When demand goes up, value goes up at the same time. It's not limited to the price. However, currently, market value fully depends on investors. When investors move on a coin, its value and price go up.

Other cryptocurrencies is under bitcoin and bitcoin increase is what attracts the market of others and other cryptocurrencies can not do without bitcoin, so for this, I'm telling you that what you have to do is to make sure you have more of bitcoin than other cryptocurrencies because bitcoin have value and some of the cryptocurrencies is altcoins and they are not valuable and they are not same as bitcoin in terms of volatility, so I will say you should concentrate only in cryptocurrencies more and more than any other cryptocurrencies as I may say

Very good, bro. You have raised a high point. I appreciate you expressing your position on this thread. Bitcoin generally depends on supply and demand. And secondly, according to my theory, the most important point is that, as you said, the split effect of the third party is also there in the price factor. I personally believe that the split effects of the Bitcoin price are on supply and demand.

In justification of this, if we look at the price of Bitcoin, the effect on supply and demand is equal to and even more than that, from fundamental aspects. Due to these fundamental events, the same technical effect has been seen in the price of Bitcoin. And those events are the same as you mentioned: there is war, announcements, halving, etc., which affect the price apart from supply or demand, just like bull runs after halving, and due to accidents like war or COVID, the price of Bitcoin is low. The effect has been seen.

Valuing cryptocurrencies is a multi-faceted process. Several factors come into play:
1.   Scarcity: Consider the limited supply of Bitcoin (21 million coins) as a foundational pillar of its value. Other cryptocurrencies also have their unique supply constraints, influencing their worth.
2.   Utility: Cryptocurrencies serve various purposes, from Bitcoin's role as a store of value, medium of exchange, to powering smart contracts and decentralized applications.
3.   Demand: The interplay of utility, market sentiment, and regulatory factors fuels demand for cryptocurrencies.
4.   Network Effects: A cryptocurrency's value can be influenced by the size and growth of its network. A larger, more active network makes a cryptocurrency more attractive and useful.
5.   Cost of Production: Some cryptocurrencies, like Bitcoin, require significant resources for production, adding a layer of value due to their high production costs.
6.   Team, Community, and Roadmap: The strength of the team, the support of the community, and a well-defined roadmap are also influential in determining a cryptocurrency's value.
In the ever-evolving cryptocurrency landscape, prices exhibit constant fluctuations. However, a grasp of these factors can offer valuable insights into how to value cryptocurrencies.

If you have any questions you can contact me via my Discord: https://discord.gg/WyUZV2uP

In general, we value bitcoins or cryptocurrencies with dollars or other fiat currencies based on supply and demand. Which has already been explained beautifully by many people above. The matter is much like our daily vegetable market, when the production of vegetables is high, the price of the vegetable goes down, but when the production is low and the demand is high, the price of the vegetable or the product goes up. The thing is very much the same here.
However, I think that was not the main purpose of the invention of Bitcoin or cryptocurrency. It created a decentralized economy system where people transact with each other through cryptocurrency transactions. I actually mean that, eg: 1 Bitcoin is worth 1 Bitcoin.

Bitcoin is successful from the past and there occurs no reduction in its success therefore people are aware about its worthiness so they cannot ignore its utilities. Whereas altcoins may loss their value with the passage of time because most of altcoins are just trends based or working on one utility so people cannot believe altcoins as no body wants to get rid of their money. Altcoins like Ethereum are not included.

I will give an example that a person start business and if there is a more buyer of specific item then value will increase day by day with increase of demand and if buyer ignore any items then you will reduce its worth to attract more buyers to get rid if it. Same is with bitcoin and altcoins. Bitcoin has limited supply and large number of buyer which will definitely attract more buyers and high demand will lead to Increase in price.

yup it is calculation of total market value of coin/token

When the circulation supply is fixed, if investors buy more of that coin and sell less, then there will be a shortage of the coin and the price of the coin will rise. In order for the price of a coin to rise, the demand for that coin must exceed then its supply.

When it comes to the value of bitcoin and other cryptocurrencies, the simplest form to explain how they derive their prices is, the market decide to the price of each and every coin or token, be it bitcoin, or the alternative coins.

Demand and supply plays the role in determining the price of a coin, like when demand for a coin like bitcoin is very high, and the supply, which is people willing to sell bitcoin is low, the price will always skyrocket, that is, go up, because many people are buying, but the supply is low to serve them all at the same time.

And so does it also work in the reverse, when demand is low, and supply, that is people selling, is high, the price goes down..

So overall, the market is the deciding factor, when it come to how bitcoin and cryptocurrencies prices in general, is determined.

I don't think Bitcoin can really be valued using equations especially that some aspect of it is speculative!

AFAIK, Bitcoin price leans towards what the buyer/seller is willing to pay or offer hence the reason why the laws of supply and demand tend to be applied,it's only that we use centralised exchanges more often these days but with decentralized exchanges the buyer or seller fixes the price..which bases it's price at auction value...

When it comes to Bitcoin, its price is mostly dependent on the buying and selling of it. If people buy more Bitcoin than they sell, then Bitcoin's price will increase and it's the opposite in the other case.

That's how the crypto market works. In addition to that, there are third-party factors that could affect Bitcoin's price, such as wars or significant world announcements related to Bitcoin and cryptocurrencies in general, as well as events like the halving as far as I know.

Makes perfect sense. Mining cost used to always work as the bottom line.
It can be broken with enough pressure, but only for a limited time.



I've always said that it's pointless to try to value bitcoin by looking at a daily exchange price, since the exchange volume is so small and people gamble (trade with leverage).
You either have to look at the average price like 200 MA, or at the mining cost.

.. Indeed, news and other concerns have a big impact on the bitcoin market. Because of its comparatively tiny market capitalization, Bitcoin is vulnerable to manipulation and can be volatile due to sensitivity to market sentiments. As you correctly point out, conducting in-depth study on trends is essential for anyone wishing to work in this field.

Its interesting to consider this claim—that the price is influenced by FUD (Fear, Uncertainty, and Doubt) or good news—critically and consider how these aspects manifest themselves. With Bitcoin, news may travel fast and significantly change how markets behave. Investors must not only keep up with current events, but also assess them critically in order to determine how they might affect the market.

Let us just be grateful that we have this new digital currency and we are enjoying the benefits of it.
There's no need to think about this value because you will only get crazy evaluating such worth.
For now, we are seeing how much it is being valued in the market by how much it is equivalent in dollars.

No one has derived any method for that, and no one has ever tried to seriously do it, at least to my knowledge. There are some very naive models, like thinking that Bitcoin's marketcap should be equal to the sum of all wealth, or all fiat currencies, but it's obviously useless.

It's just impossible to put a price tag on the properties that Bitcoin provides - being your own bank, censorship resistance, etc.

And currently Bitcoin is still in speculation phase where a lot of users just buy it to sell later, and this is the main drive behind supply and demand rather than Bitcoin's fundamentals.

I will also add a little that causes an increase in supply and demand which can have a big influence on price movements. News and issues are very sensitive to Bitcoin, these two things can change sentiment in the Bitcoin market. Because Bitcoin's market cap is still relatively small and relatively new, Bitcoin is very likely to be manipulated, so to get involved in Bitcoin you really need to do detailed research on trends and so on.
As the old saying goes, the price of Bitcoin depends on FUD or Good News.

The best way I know to value crypto currency or BTC is by investment. Somehow, one has to get involved in the activities and projects that make these cryptocurrencies work and be an ambassador for it.
There has never been a better way to value BTC that to HoDL, trade or pay rapt attention to crypto signals and whale movements to gain the best vantage position. Also, now that the price if BTC is high, one way to Value it is to simply speculate to the mentees the market situation and guide them possibly to make better trading decisions.

The market is volatile, which is one of the factors that are we should trade with prudence; any minor mistakes can result in a punitive fee, resulting in losses. Bitcoin is the independent valuable coin on the market; it is easily identifiable and frequently utilized in the system. Bitcoin can never lose value; it can only dump hard and liquidate trader accounts, but as the saying goes, what goes up must surely go down, and what goes down must surely go up. That is the exact movement of bitcoin in market charts, showing good concerns of bull and bear season.

Well, unlike traditional equities determining the value of bitcoin or any other crypto is quite more in-depth.

• Scarcity and Supply -> Bitcoin, for instance, has a capped supply of 21 million coins. The limited supply is a significant factor influencing its value.
• Adoption and Use Cases -> The more real-world applications and adoption a cryptocurrency has, the more valuable it is likely to become. Factors like how widely it's accepted as a means of payment or its use in smart contracts can affect its value.
• Technology and Development -> The development team's capabilities are critical. Updates, innovations, and scalability solutions can positively impact a cryptocurrency's value.
• Market Liquidity -> The ease with which a cryptocurrency can be bought or sold in the market affects its value. Higher liquidity can be an indicator of a healthier market.

That's as hot as my brain is for now , however there's more

Bitcoin raises its value because people are buying and there is an increasing demand while the supply remains. It is the same scenario that will happen to altcoins. As you can see many altcoins are dying because nobody is buying them and demand is declining. Well, we can say that people never value them as they are useless either. Bitcoin gain such appraise and continue growing because there is an increased number of users, investors, and traders due to its profit potential and usefulness, unlike these altcoins where most of them are useless and scam.

The demand and supply factors are another consideration when it comes to Bitcoin getting value. These factors are very much important because they play a vital role in the circulation of Bitcoin in the society. When there are much demand for Bitcoin and the supply is low it triggers the value of Bitcoin to plummet to a higher price than it was before. When the rate of adoption increases, the tendencies of price increase is established because there would definitely be a high demand for Bitcoin. So therefore, the value of Bitcoin is also dependent on the supply and demand factors.

Bitcoin value start from you down, base on the entry price you buy, that determine the value profits return, so Bitcoin has a potential value if you can hold for a long time investment.

you got a couple details the wrong way round

although mining has many costs depending on location, electric rating and such. these variables are not "value"
"value" is the baseline CHEAPEST/MOST EFFICIENT on the planet. its the bottom edge of a window
find the most expensive inefficient mining practice and thats the premium, the top edge of a window

the PRICE speculates inbetween the edges of the window.

..
price speculates in a volatile manner. because the window has reasons why someone in hawaii has different variables than someone slovic/asian areas. but the base line value is a bottom edge no one wants to cross because no one is making profit if they sell for less. its the ultimate supportline sellers wont go below

speculation is a buzzword to say random guess. where as prediction is meant as judgement after analysis
you trying to say market prediction and value speculation. which is the wrong way round

there is more actual numbers and data to analyse and calculate value(bottomline) so value is not speculative

value is an amount below the market. value rises at a more stable slower rise compared to the market volatility.

---

wrong and wrong

the market PRICE is lead by supply and demand .. but the VALUE is not

the most efficient mining value has fixed details. like a 2 year lifecycle of mining hardware, contracted electric, and obviously a known blockreward amount. so value is not demand/supply driven. its cost vs reward driven

lets use dairy farmers and retail stores

the dairy farmer has a firm cost of production. the value.
the retailer can price milk at anything they like to customers depending on supply or demand.
if no one wants milk this week the retailer has to discount the price to get rid of it before the milk curdles
if there is high demand for milk but not enough production from the farm. then the retailers supply is low so they raise the price and do first come first serve basis, knowing people will pay extra

dont confuse market price with value.. dont compare wholesale with retail

and remember value is the underlying cheap side.. premium is the over the top expensive side
value is not the market price

..
though i occasionally look at market price chart wiggles. i do not get excited by the market price when i am not selling..
(if im not selling then the price is meaningless to me)
instead i value my bitcoin at the most efficient method to acquire bitcoin on the planet. as that supportline locks in my wealth/value to a point no one wants to sell below

I'll just say supply and demand. Apart from that I don't have any further idea. Maybe there's a little bit about adoption and marketcap. However, the most important thing when it comes to Bitcoin is supply and demand. It won't matter if the market cap is large but supply is greater than demand - Bitcoin prices will also be stable or even fall because there is not much demand here. In contrast, if supply is small but demand exceeds market demand, the market cap and price of Bitcoin will also increase rapidly.

You can't compare the value of shares, property, etc with value of Bitcoin which is a currency. They simply have nothing in common to be compared or use the same method to come up with the value of bitcoin.

But how do we measure value of bitcoin? I'd say it is very hard because it is decided based on supply and demand but demand is not something we can easily measure.

Some people keep suggesting to use "cost of mining" but what they forget is that bitcoin is not like something like gold that has a fixed cost of mining that is NOT affected by price of gold. Bitcoin cost of mining is affected by price of bitcoin. Which means if bitcoin is $1, the cost of mining it is just as low and if it is $1 million it will be just as high because the difficulty is adjusting based on hashrate which is increasing with the price.

I have some criteria for my consideration on value of a cryptocurrency

- Total supply. Too high means low price.
- Proof of Work. I don't choose Mintable tokens.
- Use case
- Utility

If a cryptocurrency does not have good use case, utility, it's hard for it to gain good value. No value, no good trading price on the market.
Without good use case and utility, demand on the cryptocurrency can not be high and can not be maintained at high with time. After a trend gone, its demand will drop a lot.
Less demand, lower price or worse the cryptocurrency will die.

And with Bitcoin, we know for a fact that the cost of mining a single Bitcoin will go up up up. This means the value rises, but as Frank mentioned, market price is not the value. This is why looking at a speculated value instead of the price is the preferred perspective of hodlers.

There are way too many unknowable variables to define the speculational value at some future or even present time. All we know that Bitcoin is designed to become more scarce and the demand for Bitcoin is still strong, after all these years.

That seems like a projection which sparks confidence.

The price of Bitcoin is likely influenced by the fundamental principles of supply and demand. While its fixed supply contributes to limited availability, when there's a surge in demand and people are holding onto their Bitcoin (often referred to as 'HODLing'), it can result in significant price volatility. These two factors, supply and demand, play a crucial role in determining Bitcoin's value.

I hope I was able to answer it right because honestly this question is quite tricky since crypto is different from the usual assets, so I guess we should focus on factors like utility and demand to determine it's real value.

As a guy that mines  I can tell you creating a coin is around 17-24k assuming just the power cost.

pretend you have a  s19xp it  pulls  80kwatts a day x 3 cents = $2.40 and mines 140 x 0.00000199 btc = 0.0002786 btc a day

lets round this to

$2.50 in power makes  0.000280 btc
$25.00 in power makes 0.00280 btc
$250.00 in power makes 0.0280 btc
$2500.00 in power makes 0.280 btc
$8928. in 3 cent power to make 1 btc.

but you need to add costs of labor.
the building housing the gear
and the gear.

My gear cost is paid for
my housing cost is paid for
my labor is my own.  If coins were to stay at 34000 after the ½ inning I would likely quit mining.

even with my cheap power deal.

marketcap is off by lengths.
Networkactivity should be the decisive factor.

Actually, I am of the view and opinion that a token or coin utility also contributes to the value and existence of the coin. When a coin or token is of good use in the market, the demand is always on the high side which causes an increase in the price value of that coin in the market thereby pushing up the use value of that coin. Value too has to do with acceptability. When  a crypto is acceptable in the market it means that there is every possibility that the crypto  would be in much demand in the market and that causes a sudden rise in price of that coin which shows the value of that coin.  For instance, Bitcoin is seen as a store of value so therefore people use it to measure their asset worth and in that case they store their wealth and asset in bitcoin which is quantifiable and  shows the asset equivalent in the number of bitcoin they have.

I think the value of Bitcoin and cryptocurrency is how much the person is willing to pay for it.  It is somehow subjective but in general, it depends on supply and demand and its fundamentals.  I do not think the value is dependent only on how one acquires the cryptocurrency through mining but rather it evolves around the supply and demand plus the fundamentals like the adoption, usability, or real-life case, cost of acquisition, and the long-term market of the said asset.

In addition Investopedia made a list of how to calculate Bitcoin's fair value.  It is stated in this article: Do Bitcoins Have Intrinsic Value?

There's also mining difficulty, total hash power and indicators used to determine what the average price of newly mined bitcoin is. The price of coins mined at different points in time create something that we could call price floor at that time. It's a similar indicator trader use to know how many holders are at a loss. The more people at profit the more above the average transactional price bitcoin is, which allows us to estimate its value.

I think giving value to crypto or bitcoin is through supply and demand. Of course, when more and more people develop an interest in Bitcoin to have it, the demand increases, and that is good news for us because the price value of Bitcoin will gradually increase in the market.

And what is also important here is that we will also look at its utility, which will be its usage, like in Bitcoin, where it can be used as a payment for a business that also recognizes Bitcoin, and in addition, it can also be used to send money to different parts of the world as well as other cryptocurrencies, if not all.

That's why we should know how to value Bitcoin when we do it in the era we live in today.

Bitcoin is not like any other type of asset, so everyone evaluates it purely individually. However, one great way to evaluate it is to see how popular it is with people when times get tough. And I noticed that often people prefer to reduce the share of Bitcoin in their portfolio if everything is bad. But on the contrary, they buy more gold. The conclusion from this is that people do not trust Bitcoin as a safe haven currency.

The value of a coin or token is also dependent on the usability of the coin. For example, Bitcoin is a universal coin that a lot of institutions have adopted; many companies, some schools, and a lot of individuals worldwide are using Bitcoin. The high usability of Bitcoin and its limited supply are what give the coin great value. Normally, if there is a surplus supply and low demand, the value of such items will not really be of good value. For example, there are hundreds of alt coins that are not so valued, and the price of those coins is very low from year to year. The reason why this is so is because there is not much use for those coins, and they also have a huge supply compared to what they're used for.

This has to be combined with utility that the product has. There cannot be a linear relationship between the value of a product and the cost to acquire the product. Gold is difficult to mine and has real world value, both factors has to be present. A product can have real world value but can be easily acquired anywhere in the world with no effort, and it can have no utility, but be very rare; in both situations the value of the product will be low.

Bitcoin has utility which creates the demand, it also has a limited supply which means the demand is constantly growing against it.

NO!

value is not market price

the best method is to look at the most cost efficient method of acquiring an asset.

for instance if it costs a gold miner $900 to mine. and thats the cheapest on planet, that is the value point
for instance if it costs a btc miner $24k to mine. and thats the cheapest on planet, that is the value point

value is not price..

think of value as the whole sale cost and the market as the retail price.
value is a different number to the market

bitcoin price(34k) sits nearish to good value(23k) compared to the ATH premium(70k)(2021 high)
  0     23  34          70
  ||||||||||||||||||||
               ^

gold price(2k) sits no where near value(900) compared to the ATH premium(2.2k)
  0        900       2  2.2k
  ||||||||||||||||||||
                        ^

use the cryptos most efficient and least efficient mining cot on the planet to work out value vs premium.. then see where the price sits
to see if if the price is in value or premium zone

2023 adjusted view of bitcoin shows there is potential premium window limit of $140k instead of 2021's $70k which puts bitcoin more into the greenzone. however we have not tested the upper limits. so playing it safe bitcoin has potential to reach 70k again meaning a 2x upside atleast.
where as gold is near its all time peak meaning not much upside

Value is best on demand and supply. If people want something they will pay for it. And the person who has it can offer a price. That's how value is created. If the demand is high and the supply is low, the value will increase. And if the supply is high and the demand is low, then the value will decrease.

You can apply the same thing with Bitcoin and other cryptocurrency. There are other things like potential. If one can predict what the future is going to be then they will demand more. And based on supply the value will be created. It's a very simple thing. Bitcoin has created a reputation so I can't give good example with it. For that reason I am choosing alt coins. For example, if there is a new coin and people see that it has potential to grow by its use case and people behind it, then people will buy it. Thus creating a demand. Based on that those who created the coin could make an offer. And if the both parties are on the same page then they will make an exchange. And a value will be created. That's how it works.

Market Cap = Current Price x Circulating Supply

Price = Marketcap divided by Circulating supply.

If people buy more bitcoin, the market will increase, which is proportional to the price. Which means as people buy more bitcoin than selling it, the price will increase.

like we value equities using equations and ratios, what are the factors on basis of which one can do valuation of bitcoins and the other cryptocurrencies for that matter.