Topic: How underpriced/overpriced Bitcoin is against fiat? (Read 1670 times)

Since the Federal Reserve is pumping billions per month and essentially debasing the dollar along the way, I wouldn't be surprised to see that influence in the pricing. Not that bitcoin isn't inherently more valuable, just that this kind of debt monetization will be an additional catalyst for higher pricing.

I like $100 much better mind you. 

20$ bitcoins isn't that much harder, and i don't feel like seeing bitcoin go down, so i vote for that

$10 bitcoin makes conversions nice and simple, so i vote for that.

for the PSP in europe for btc now?

The rest of the currencies on there, as well as the currencies in other articles, have ISO codes. I will lobby for the return of Bitcoin as soon as its ISO 4217 code has been assigned.

who took it down?

http://en.wikipedia.org/wiki/Highest-valued_currency_unit

Bitcoin: Simultaneously the most valuable and the most undervalued currency in the world.

btc = at least $100

I am assuming that exchanges do not not have hidden depth in sense that there are orders which are not visible in the orderbook.

But you are right that there is no way to tell how many resources are idling on the exchange beyond the orderbook.

I liked your idea about trying to show the walls behavior in respect to the market moves.
And I think such indicator can be constructed, for example a kind of market strength or depth relative power, which would account not only for what walls are currently in orderbooks but also  how in fact of big sail/buy they really did thier stopping job.

Can you see for example if we have currently 10k bid wall at some price and in a later moment big ~10k sell occurs there are several variants what can happen in regard of this wall :
1) wall did its job and price did not actually changed significantly - wall was eaten up
2) wall was canceled right before sell order execution - then the price moved as if there were no any wall - a kind of fall from the cliff
3)...

this two cases can be measured before and after the event to calculate expected and factual resistance of the depth. To tell was it real or was it fake. A level of maturity of the illiquid market can be seen, a answer to the question to which extent market has healthy funds and not manipulators funds.

the order books have alot of hidden depth, so its probably not a good idea to do this kind of calculation.
I guess you could argue that there is hidden depth on both sides, so its not a honorable indicator.
a better indicator, would be to know why the walls are where they are and how they will react when filled ( will they get canceled? will they get filled and more will appear? will they move if not filled? why? )
there's no way to know all this... so we look at how the market behaves, and guess.

my guess, your calculation is 100% right.  

Good question.

Some people won't buy for any more than X.XX based on previous bitcoin prices they have seen, so this isn't true. Some might even take their cash out and put it in the bank. There's a reason they have placed bids and not just bought at market.

Am I correct that the only tool we have to calculate the true would be price
is dividing all USD on the present in orderbooks against all BTC present in orderbooks orders

if so then 2472.44k USD / 94.61k BTC = 26.13 USD/BTC

so currently when rate is 13.5 USD/BTC Bitcoin is significantly underpriced?

what is wrong with this?

what is your oinion?