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Topic: Time Value of Bitcoin (Read 1921 times)

hero member
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July 25, 2011, 01:13:59 PM
#11
time value of bitcoins currently, for me, is that one minute is worth .05 bitcoins.  That's what I charge for readings.
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I yam what I yam. - Popeye
July 24, 2011, 11:54:18 PM
#10
You are most welcome!
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July 24, 2011, 10:27:57 PM
#9
Thank you vector76, TKE406, and Smalleyster.  That's what I was looking for.   Smiley
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I yam what I yam. - Popeye
July 24, 2011, 09:56:35 PM
#8
The time value of *money* (usually calculated in USD) must have a safe reference point (usually treasury bonds) to calculate against.

Because of that there is no time value of bitcoin as it has no safe reference.

Also bitcoin itself is not a stable investment so no formula can be then compared to the return of the stable investment.

http://worldacademyonline.com/article/8/210/understanding_the_concept_of_time_value_of_money.html


newbie
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July 24, 2011, 08:50:22 PM
#7
What is the time value of bitcoin?

Please, only respond if you know what you're talking about.

OP,

I am sorry that very few people actually understood what you were asking. lol.
However, previous posters are correct.
There is no objective way of quantifying the 'time value of bitcoin'

'Time value of money' is a gauging of the opportunity cost of spending or saving your money. It is generally benchmarked at current long-term bond yields, such as the US 10-year and 30-year treasury notes. One cannot do the same for bitcoin, because there is no central bank with discount rates, or treasuries that use OMO (open-market operations).
Generally, if you put $1000 into your wallet, it stays there unchanged. You can invest in a mutual fund and expect to get 8-12% returns per year (though your money is not guarantee to appreciate).

You cannot calculate the 'time value of money'... because it would be like the 'time value of a google stock'. It is speculative in nature, and events could shift either the buyers or the sellers to want either less or more.
member
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July 24, 2011, 03:48:53 PM
#6
The time value of bitcoin is described by originary interest.

http://mises.org/humanaction/chap19sec2.asp

For money or assets with an interest rate market, time value can be easily calculated.  (Although this is the time value ascribed by the market, which is not necessarily the same as the time value to a particular individual.)

For other items, or for a particular individual, time value still exists but is not subject to easy calculation.
legendary
Activity: 1008
Merit: 1023
Democracy is the original 51% attack
July 23, 2011, 01:12:04 PM
#5
Time value varies for every person. One person may have high time value, and another has low time value.

Bitcoin, as a money, doesn't have a specific time value.

If you have a high time value for Bitcoins, then you would require higher interest rates to loan your money to someone else. Similarly, you would pay higher interest rates to borrow Bitcoins in the present.

Put simply, if someone has a high time value, it means they want to consume in the present instead of the future. Low time value means they are willing to delay consumption.
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July 23, 2011, 12:21:50 PM
#4
No, my question was "What is the time value of bitcoin?"  not "What is the time value of bitcoin as valued in dollars?".  I did not ask "the wrong question".  You changed my question and then labeled it "the wrong question".  

Please, only respond if you know what you're talking about.  

http://en.wikipedia.org/wiki/Time_value_of_money
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July 23, 2011, 01:52:01 AM
#3
What would it be currently?  And show how you calculated it.
legendary
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July 23, 2011, 01:44:32 AM
#2
It varies.
member
Activity: 70
Merit: 10
July 23, 2011, 01:42:57 AM
#1
What is the time value of bitcoin?

Please, only respond if you know what you're talking about.
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