We can't imagine how bitcoin become famous today, from crap into a very precious thing as I've described.
Bitcoin nowadays become popular and everyone wanting to have it as their investment. As it become valuable, the more it become influencial in the market.
Topic: The value of bitcoin? - page 18. (Read 4486 times)
Adams Smith wrote that the price of all things are equivalent to the human labor involved in their exploitation. The price of gold is determined by the cost in human labor to mine it. It can then be exchanged for another commodity which takes an equal amount of labor to create it.
Over time I have been able to find ways to place a price on stocks which I can use to evaluate what their value is to me. I can then buy and sell based on what I determine as value at any time.
I’m not a currency speculator but I also believe the US dollar is being killed. I don’t like having much of a cash position but would rather be fully invested. At this time what I see is a highly inflated value of the S&P 500. Any bonds other the very short term bonds come with too much risk tied to the Feds low interest rate policy and the increasing money supply along with quantitative easing which is placing too much fake money on the Feds balance sheet.
After many years I have developed a feel or intuition to tell me when prices are out of line. When it comes to bitcoin I am at a loss. I like the core concept of bitcoin and long term it seem like it will all work out but it’s value is another issue. I just don’t have a feel for what it’s worth in exchange for food, a house, a car, gold equivalent. It seem that it should be relatively close in value to the cost incurred by the bitcoin miners. How do I find out what the current cost is to mine bitcoins. It cost to mine a well know number kind of like the PE for a stork or index?
I have started to buy small amounts which I plan to hold but I really don’t like the volatility. It is also difficult to invest in something when I don’t really have any history to give me a clue of somethings value. I doubt I would hold if bitcoin went over 5000. It seems to be moving a bit too fast.
Over time I have been able to find ways to place a price on stocks which I can use to evaluate what their value is to me. I can then buy and sell based on what I determine as value at any time.
I’m not a currency speculator but I also believe the US dollar is being killed. I don’t like having much of a cash position but would rather be fully invested. At this time what I see is a highly inflated value of the S&P 500. Any bonds other the very short term bonds come with too much risk tied to the Feds low interest rate policy and the increasing money supply along with quantitative easing which is placing too much fake money on the Feds balance sheet.
After many years I have developed a feel or intuition to tell me when prices are out of line. When it comes to bitcoin I am at a loss. I like the core concept of bitcoin and long term it seem like it will all work out but it’s value is another issue. I just don’t have a feel for what it’s worth in exchange for food, a house, a car, gold equivalent. It seem that it should be relatively close in value to the cost incurred by the bitcoin miners. How do I find out what the current cost is to mine bitcoins. It cost to mine a well know number kind of like the PE for a stork or index?
I have started to buy small amounts which I plan to hold but I really don’t like the volatility. It is also difficult to invest in something when I don’t really have any history to give me a clue of somethings value. I doubt I would hold if bitcoin went over 5000. It seems to be moving a bit too fast.
It is indeed moving too fast, for the past weeks the value of bitcoin is just playing around $7000, It's volatility is not predictable as the stock market. I understand if you don't want to take a risk, but based on its trend, there's a bright future for btc, it has a great probability that btc will continue in the future. And for its value, the stochastic trend of it makes btc more interesting for the investors, i think.
The volitaile nature of bitcoin is precisely why most people got in the first place. Yeah the swings are nasty but if you play your cards correctly there is a lot of money to be made. It is hard to give bitcoin a value other than the
one it is currently attaining in the market. At the time of writing that would be around ~7300 and that to me seems like a fair price, but to others it may be either cheap yet or too expensive.
one it is currently attaining in the market. At the time of writing that would be around ~7300 and that to me seems like a fair price, but to others it may be either cheap yet or too expensive.
Adams Smith wrote that the price of all things are equivalent to the human labor involved in their exploitation. The price of gold is determined by the cost in human labor to mine it. It can then be exchanged for another commodity which takes an equal amount of labor to create it.
Over time I have been able to find ways to place a price on stocks which I can use to evaluate what their value is to me. I can then buy and sell based on what I determine as value at any time.
I’m not a currency speculator but I also believe the US dollar is being killed. I don’t like having much of a cash position but would rather be fully invested. At this time what I see is a highly inflated value of the S&P 500. Any bonds other the very short term bonds come with too much risk tied to the Feds low interest rate policy and the increasing money supply along with quantitative easing which is placing too much fake money on the Feds balance sheet.
After many years I have developed a feel or intuition to tell me when prices are out of line. When it comes to bitcoin I am at a loss. I like the core concept of bitcoin and long term it seem like it will all work out but it’s value is another issue. I just don’t have a feel for what it’s worth in exchange for food, a house, a car, gold equivalent. It seem that it should be relatively close in value to the cost incurred by the bitcoin miners. How do I find out what the current cost is to mine bitcoins. It cost to mine a well know number kind of like the PE for a stork or index?
I have started to buy small amounts which I plan to hold but I really don’t like the volatility. It is also difficult to invest in something when I don’t really have any history to give me a clue of somethings value. I doubt I would hold if bitcoin went over 5000. It seems to be moving a bit too fast.
I do not remember where but I have read that is not the case and that theory has been disproved, let me give you an example, if you begin to paint the materials are going cost you a certain amount of money, however if you are not very good and you are not famous the art you create is going to be worth less than the materials used to create it but if you are good and you are famous the value of your painting is going to exceed the value of the materials used to create it. Over time I have been able to find ways to place a price on stocks which I can use to evaluate what their value is to me. I can then buy and sell based on what I determine as value at any time.
I’m not a currency speculator but I also believe the US dollar is being killed. I don’t like having much of a cash position but would rather be fully invested. At this time what I see is a highly inflated value of the S&P 500. Any bonds other the very short term bonds come with too much risk tied to the Feds low interest rate policy and the increasing money supply along with quantitative easing which is placing too much fake money on the Feds balance sheet.
After many years I have developed a feel or intuition to tell me when prices are out of line. When it comes to bitcoin I am at a loss. I like the core concept of bitcoin and long term it seem like it will all work out but it’s value is another issue. I just don’t have a feel for what it’s worth in exchange for food, a house, a car, gold equivalent. It seem that it should be relatively close in value to the cost incurred by the bitcoin miners. How do I find out what the current cost is to mine bitcoins. It cost to mine a well know number kind of like the PE for a stork or index?
I have started to buy small amounts which I plan to hold but I really don’t like the volatility. It is also difficult to invest in something when I don’t really have any history to give me a clue of somethings value. I doubt I would hold if bitcoin went over 5000. It seems to be moving a bit too fast.
Adams Smith wrote that the price of all things are equivalent to the human labor involved in their exploitation. The price of gold is determined by the cost in human labor to mine it. It can then be exchanged for another commodity which takes an equal amount of labor to create it.
Over time I have been able to find ways to place a price on stocks which I can use to evaluate what their value is to me. I can then buy and sell based on what I determine as value at any time.
I’m not a currency speculator but I also believe the US dollar is being killed. I don’t like having much of a cash position but would rather be fully invested. At this time what I see is a highly inflated value of the S&P 500. Any bonds other the very short term bonds come with too much risk tied to the Feds low interest rate policy and the increasing money supply along with quantitative easing which is placing too much fake money on the Feds balance sheet.
After many years I have developed a feel or intuition to tell me when prices are out of line. When it comes to bitcoin I am at a loss. I like the core concept of bitcoin and long term it seem like it will all work out but it’s value is another issue. I just don’t have a feel for what it’s worth in exchange for food, a house, a car, gold equivalent. It seem that it should be relatively close in value to the cost incurred by the bitcoin miners. How do I find out what the current cost is to mine bitcoins. It cost to mine a well know number kind of like the PE for a stork or index?
I have started to buy small amounts which I plan to hold but I really don’t like the volatility. It is also difficult to invest in something when I don’t really have any history to give me a clue of somethings value. I doubt I would hold if bitcoin went over 5000. It seems to be moving a bit too fast.
Shipping these T-shirts is the big problem in this . We can't just ship to the 3rd world countries easily. So i guess this will only work at NA and EU only. Not in Asia at all. Over time I have been able to find ways to place a price on stocks which I can use to evaluate what their value is to me. I can then buy and sell based on what I determine as value at any time.
I’m not a currency speculator but I also believe the US dollar is being killed. I don’t like having much of a cash position but would rather be fully invested. At this time what I see is a highly inflated value of the S&P 500. Any bonds other the very short term bonds come with too much risk tied to the Feds low interest rate policy and the increasing money supply along with quantitative easing which is placing too much fake money on the Feds balance sheet.
After many years I have developed a feel or intuition to tell me when prices are out of line. When it comes to bitcoin I am at a loss. I like the core concept of bitcoin and long term it seem like it will all work out but it’s value is another issue. I just don’t have a feel for what it’s worth in exchange for food, a house, a car, gold equivalent. It seem that it should be relatively close in value to the cost incurred by the bitcoin miners. How do I find out what the current cost is to mine bitcoins. It cost to mine a well know number kind of like the PE for a stork or index?
I have started to buy small amounts which I plan to hold but I really don’t like the volatility. It is also difficult to invest in something when I don’t really have any history to give me a clue of somethings value. I doubt I would hold if bitcoin went over 5000. It seems to be moving a bit too fast.
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In bitcoin world the volatility which cause the ridiculous increase in value of bitcoin some will say was the only thing that create people love at first sight toward bitcoin and concerning the OP not knowing the past record or history of bitcoin price. You can figure out that using the coin cap market chart and historical data for bitcoin.
Adams Smith wrote that the price of all things are equivalent to the human labor involved in their exploitation. The price of gold is determined by the cost in human labor to mine it. It can then be exchanged for another commodity which takes an equal amount of labor to create it.
Over time I have been able to find ways to place a price on stocks which I can use to evaluate what their value is to me. I can then buy and sell based on what I determine as value at any time.
I’m not a currency speculator but I also believe the US dollar is being killed. I don’t like having much of a cash position but would rather be fully invested. At this time what I see is a highly inflated value of the S&P 500. Any bonds other the very short term bonds come with too much risk tied to the Feds low interest rate policy and the increasing money supply along with quantitative easing which is placing too much fake money on the Feds balance sheet.
After many years I have developed a feel or intuition to tell me when prices are out of line. When it comes to bitcoin I am at a loss. I like the core concept of bitcoin and long term it seem like it will all work out but it’s value is another issue. I just don’t have a feel for what it’s worth in exchange for food, a house, a car, gold equivalent. It seem that it should be relatively close in value to the cost incurred by the bitcoin miners. How do I find out what the current cost is to mine bitcoins. It cost to mine a well know number kind of like the PE for a stork or index?
I have started to buy small amounts which I plan to hold but I really don’t like the volatility. It is also difficult to invest in something when I don’t really have any history to give me a clue of somethings value. I doubt I would hold if bitcoin went over 5000. It seems to be moving a bit too fast.
Over time I have been able to find ways to place a price on stocks which I can use to evaluate what their value is to me. I can then buy and sell based on what I determine as value at any time.
I’m not a currency speculator but I also believe the US dollar is being killed. I don’t like having much of a cash position but would rather be fully invested. At this time what I see is a highly inflated value of the S&P 500. Any bonds other the very short term bonds come with too much risk tied to the Feds low interest rate policy and the increasing money supply along with quantitative easing which is placing too much fake money on the Feds balance sheet.
After many years I have developed a feel or intuition to tell me when prices are out of line. When it comes to bitcoin I am at a loss. I like the core concept of bitcoin and long term it seem like it will all work out but it’s value is another issue. I just don’t have a feel for what it’s worth in exchange for food, a house, a car, gold equivalent. It seem that it should be relatively close in value to the cost incurred by the bitcoin miners. How do I find out what the current cost is to mine bitcoins. It cost to mine a well know number kind of like the PE for a stork or index?
I have started to buy small amounts which I plan to hold but I really don’t like the volatility. It is also difficult to invest in something when I don’t really have any history to give me a clue of somethings value. I doubt I would hold if bitcoin went over 5000. It seems to be moving a bit too fast.
It seems to me that the value of bitcoin is determined by the price that people are willing to pay for it. All comes down to supply and demand. Which is funny, since there is no real demand for bitcoin. I could live my life and never invest a single cent. I don't need bitcoin for my everyday live, all I'll need is euros. Maybe this will change in the near future
Adams Smith wrote that the price of all things are equivalent to the human labor involved in their exploitation. The price of gold is determined by the cost in human labor to mine it. It can then be exchanged for another commodity which takes an equal amount of labor to create it.
Over time I have been able to find ways to place a price on stocks which I can use to evaluate what their value is to me. I can then buy and sell based on what I determine as value at any time.
I’m not a currency speculator but I also believe the US dollar is being killed. I don’t like having much of a cash position but would rather be fully invested. At this time what I see is a highly inflated value of the S&P 500. Any bonds other the very short term bonds come with too much risk tied to the Feds low interest rate policy and the increasing money supply along with quantitative easing which is placing too much fake money on the Feds balance sheet.
After many years I have developed a feel or intuition to tell me when prices are out of line. When it comes to bitcoin I am at a loss. I like the core concept of bitcoin and long term it seem like it will all work out but it’s value is another issue. I just don’t have a feel for what it’s worth in exchange for food, a house, a car, gold equivalent. It seem that it should be relatively close in value to the cost incurred by the bitcoin miners. How do I find out what the current cost is to mine bitcoins. It cost to mine a well know number kind of like the PE for a stork or index?
I have started to buy small amounts which I plan to hold but I really don’t like the volatility. It is also difficult to invest in something when I don’t really have any history to give me a clue of somethings value. I doubt I would hold if bitcoin went over 5000. It seems to be moving a bit too fast.
Over time I have been able to find ways to place a price on stocks which I can use to evaluate what their value is to me. I can then buy and sell based on what I determine as value at any time.
I’m not a currency speculator but I also believe the US dollar is being killed. I don’t like having much of a cash position but would rather be fully invested. At this time what I see is a highly inflated value of the S&P 500. Any bonds other the very short term bonds come with too much risk tied to the Feds low interest rate policy and the increasing money supply along with quantitative easing which is placing too much fake money on the Feds balance sheet.
After many years I have developed a feel or intuition to tell me when prices are out of line. When it comes to bitcoin I am at a loss. I like the core concept of bitcoin and long term it seem like it will all work out but it’s value is another issue. I just don’t have a feel for what it’s worth in exchange for food, a house, a car, gold equivalent. It seem that it should be relatively close in value to the cost incurred by the bitcoin miners. How do I find out what the current cost is to mine bitcoins. It cost to mine a well know number kind of like the PE for a stork or index?
I have started to buy small amounts which I plan to hold but I really don’t like the volatility. It is also difficult to invest in something when I don’t really have any history to give me a clue of somethings value. I doubt I would hold if bitcoin went over 5000. It seems to be moving a bit too fast.
Today the value of the bitcoin is $4212 and day by day it will increase only . The price of gold is determined by the cost in human labor to mine it. It can then be exchanged for another commodity which takes an equal amount of labor to creaissue . I like the core concept of bitcoin and long term it seem like it will all work out but it’s value is another issue and this are the value of bitcoin
I disagree that the value of gold is determined by the cost in human labor. You have to factor in the demand for this and the many uses of it. Ultimately it all boils down to supply and demand. Price and value is subjective and is very much dependent on the economic meta. Globalization made it easier for goods to be supplied and exchanged, so there really are too many variables involved.
In terms of the value of bitcoin, I believe this gained momentum because of the awesome functions it possess. One among many things would be convenience as well as decentralized making it difficult for the authorities to track. A huge part of the world is greedy and would always seek for ways to make money, sad to say majority of them would be willing to break the rules. But it is because of these people that the value of bitcoin has gained momentum.
I don't agree with Adam Smith.
Bitcoin price is being determined by the free market, it worth what people are willing to pay for it.
The more the bitcoin price goes up, the more it becomes profitable to mine, which makes more miners to join the circulation, which increases the difficulty of mining a bitcoin, and makes it cost more to mine.
I think that the price of something is only related to how much people want it and are willing to pay for it.
Bitcoin price is being determined by the free market, it worth what people are willing to pay for it.
The more the bitcoin price goes up, the more it becomes profitable to mine, which makes more miners to join the circulation, which increases the difficulty of mining a bitcoin, and makes it cost more to mine.
I think that the price of something is only related to how much people want it and are willing to pay for it.
Sigh, it seems like many people do not really quite understand bitcoin yet. I do believe you are somewhat and then somewhat wrong on your statement.
There are many factors that determine the value of bitcoin, it can just be based off greed and what people are willing to pay for it. You said that mining makes bitcoin more valuable which is true and that is just one factor of it. The fact I believe that bitcoin is the first Digital or crypto currency to have a cap is one of the reasons why it holds so much value. To point out Bitcoin can be used to make online purchases not just to store value. These are only two factors that give it the value it is going to deserve. There are many factors that are driving of bitcoin. Its not only based on what people are willing to pay for it.
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Adams Smith wrote that the price of all things are equivalent to the human labor involved in their exploitation.
This is the value, this is not the price.
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I don't agree with Adam Smith.
Bitcoin price is being determined by the free market, it worth what people are willing to pay for it.
Bitcoin price is being determined by the free market, it worth what people are willing to pay for it.
This is the definition of price in a free market (so not in a communist state for example).
The value of bitcoin is driven by its community support.First,its price was very low as very few people used it and so the demand was very low.Mass adoption was needed for bitcoin's price to increase high and nowadays,its becoming true.More companies coming forward to accept bitcoin payment,more countries to legalize bitcoin.
The main reason for its continuous increase in value is its limited supply of 21 million coins and unlike paper currency,it could not be printed more and issued which causes value of paper currency to get low.
It is an acceptable fact worldwide that greater the demand, greater will be the price of a product. It works exactly the same in case of bitcoin also, since a huge number of people are involved in this bitcoin business it causes the value of bitcoin to increase. The main reason for its continuous increase in value is its limited supply of 21 million coins and unlike paper currency,it could not be printed more and issued which causes value of paper currency to get low.
Another reason is that it is appreciated at government level, many governments have their processes undergoing in the legalization of bitcoin which ultimately causes its value to increase.
Value of Bitcoin increasing in minutes and its a blessing for those who have no hope,and bitcoin is the where you stable you financially.If you are going to invest in bitcoin and hold it definitely you will earn handsome profit due to increasing value of bitcoin.
The value of bitcoin will continue to fly high for now. People speculate that is going to dip to $3800 but that is not visible to me. My reason is that, nothing is pulling it down just yet, governments have not blantantly rejected it rather they are looking for means to adopt it, more organizations and companies have been adopting, using it to transact businesses ,more individuals are coming into it - these and others are some of the reasons that bitcoin is expected to continue raising .
The value of bitcoin is driven by its community support.First,its price was very low as very few people used it and so the demand was very low.Mass adoption was needed for bitcoin's price to increase high and nowadays,its becoming true.More companies coming forward to accept bitcoin payment,more countries to legalize bitcoin.
The main reason for its continuous increase in value is its limited supply of 21 million coins and unlike paper currency,it could not be printed more and issued which causes value of paper currency to get low.
It is an acceptable fact worldwide that greater the demand, greater will be the price of a product. It works exactly the same in case of bitcoin also, since a huge number of people are involved in this bitcoin business it causes the value of bitcoin to increase. The main reason for its continuous increase in value is its limited supply of 21 million coins and unlike paper currency,it could not be printed more and issued which causes value of paper currency to get low.
Another reason is that it is appreciated at government level, many governments have their processes undergoing in the legalization of bitcoin which ultimately causes its value to increase.
The value of bitcoin is driven by its community support.First,its price was very low as very few people used it and so the demand was very low.Mass adoption was needed for bitcoin's price to increase high and nowadays,its becoming true.More companies coming forward to accept bitcoin payment,more countries to legalize bitcoin.
The main reason for its continuous increase in value is its limited supply of 21 million coins and unlike paper currency,it could not be printed more and issued which causes value of paper currency to get low.
The main reason for its continuous increase in value is its limited supply of 21 million coins and unlike paper currency,it could not be printed more and issued which causes value of paper currency to get low.
Bitcoin is only a tool to support the existing blockchain technology that are being develop today by many investors which believe in projects they choose. Pertaining the value of bitcoin, because many people invest on it, the supply of bitcoin increase due to the rising in the demand of potential projects that would have higher return of investment if successful. Popularity maybe a factor but I think its the performance of the project would be the basis of its value. If bitcoin will be a big contributary to those project, then the value of bitcoin will rise as per demand of it will also increase.
It is good to know theory behind the number of workers and generated revenues. Thats true and that is why we can explain why bitcoin price rises high whenever there is investor who makes big moves. The calculation is simple with each investment there is rise in the market capitalism and hence there is rise in the returns that bitcoin can afford to give us.
So with the increasing popularity of the bitcoin many more investors are coming into action and thus they are helping as "worker"to increase the "revenue"generated with the bitcoin. Seems fair. If thats acceptable then you should be holding your coins after reaching 10K also because we have that much market cap backed up with those investors.
I think you write little summary of bitcoin market, Bitcoin value depend on its popularity as you said, but popularity is not in sense that more people know about bitcoin more bitcoin price goes up. This popularity is based on a demand of bitcoin by real investors, When more people buy bitcoin at a time the price will increase. So with the increasing popularity of the bitcoin many more investors are coming into action and thus they are helping as "worker"to increase the "revenue"generated with the bitcoin. Seems fair. If thats acceptable then you should be holding your coins after reaching 10K also because we have that much market cap backed up with those investors.
I have never heard about that before, the fact that most things are valued for the amount of work that goes into producing it.
I always thought that anything was worth what people are willing to pay for it.
Of course there are anomalies to that rule and bitcoin is one, how is it valued at almost $6000.
There are also people who would argue that we should not be valuing it in fiat,
A bitcoin is a bitcoin and will not be anything less
I always thought that anything was worth what people are willing to pay for it.
Of course there are anomalies to that rule and bitcoin is one, how is it valued at almost $6000.
There are also people who would argue that we should not be valuing it in fiat,
A bitcoin is a bitcoin and will not be anything less
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I like the concept of monetary value being a function of #1 time, #2 innovation and #3 productivity(nearly the same thing as labor).
Yes these are factors for any kind of product to develop in its value and market popularity. I mean we have all seen the effect of time on the bitcoin and other crypto currency. They grow with the time! Thats simply because as the time is passing more people are involving themselves into it.
With the Innovations, well new projects are being implemented into ethereum blockchain and some of them are being accepted by public very easily. This leads to generation of more market reach and hence the extensive prices.
Productivity is according to me byproduct of time and innovation and it always pays off though the time.
So surely the value of bitcoin is dependent on these factors a lot.
Adams Smith wrote that the price of all things are equivalent to the human labor involved in their exploitation. The price of gold is determined by the cost in human labor to mine it. It can then be exchanged for another commodity which takes an equal amount of labor to create it.
Over time I have been able to find ways to place a price on stocks which I can use to evaluate what their value is to me. I can then buy and sell based on what I determine as value at any time.
I’m not a currency speculator but I also believe the US dollar is being killed. I don’t like having much of a cash position but would rather be fully invested. At this time what I see is a highly inflated value of the S&P 500. Any bonds other the very short term bonds come with too much risk tied to the Feds low interest rate policy and the increasing money supply along with quantitative easing which is placing too much fake money on the Feds balance sheet.
After many years I have developed a feel or intuition to tell me when prices are out of line. When it comes to bitcoin I am at a loss. I like the core concept of bitcoin and long term it seem like it will all work out but it’s value is another issue. I just don’t have a feel for what it’s worth in exchange for food, a house, a car, gold equivalent. It seem that it should be relatively close in value to the cost incurred by the bitcoin miners. How do I find out what the current cost is to mine bitcoins. It cost to mine a well know number kind of like the PE for a stork or index?
I have started to buy small amounts which I plan to hold but I really don’t like the volatility. It is also difficult to invest in something when I don’t really have any history to give me a clue of somethings value. I doubt I would hold if bitcoin went over 5000. It seems to be moving a bit too fast.
About gold price determination process based on labor involved in it makes sense. Because in this situation we are expecting honesty of company or person mining the gold. Real world is working quite differently when it comes to putting a price tag. Like, this theory of value of product based on labor invested in it fells flat when applied to the diamond. nearly After a century, it is understood that diamonds are not rare at all and are found in abundance in nature. However due to monopoly of one company over the business managed to keep its prices higher than gold.Over time I have been able to find ways to place a price on stocks which I can use to evaluate what their value is to me. I can then buy and sell based on what I determine as value at any time.
I’m not a currency speculator but I also believe the US dollar is being killed. I don’t like having much of a cash position but would rather be fully invested. At this time what I see is a highly inflated value of the S&P 500. Any bonds other the very short term bonds come with too much risk tied to the Feds low interest rate policy and the increasing money supply along with quantitative easing which is placing too much fake money on the Feds balance sheet.
After many years I have developed a feel or intuition to tell me when prices are out of line. When it comes to bitcoin I am at a loss. I like the core concept of bitcoin and long term it seem like it will all work out but it’s value is another issue. I just don’t have a feel for what it’s worth in exchange for food, a house, a car, gold equivalent. It seem that it should be relatively close in value to the cost incurred by the bitcoin miners. How do I find out what the current cost is to mine bitcoins. It cost to mine a well know number kind of like the PE for a stork or index?
I have started to buy small amounts which I plan to hold but I really don’t like the volatility. It is also difficult to invest in something when I don’t really have any history to give me a clue of somethings value. I doubt I would hold if bitcoin went over 5000. It seems to be moving a bit too fast.
Next example is very loved one, USD that is US Dollars. Cost of printing a dollar does not match with the value it holds.
Major reason of USD to remain as strong is that many other countries have heavily invested in the USD and if USD looses its value those who are depending on it are doomed. It is same as when you owe someone or some bank 1 Million as house load then you care most about paying EMIs in time. However if you owe 100 Millions to the bank then bank cares about you because their 100 Million are at stake.
As far as bitcoin valuation is concerned then current 49k dollars value is certainly not equivalent to efforts or cost of production. However in recent times, the price of bitcoin never much depended on the bitcoin mining cost in first place.
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