Topic: Valuation of Bitcoin (Read 321 times)
Valuation of Bitcoin is not a easy task it's depans on the theory of demand of supply.
Intrinsic value of Bitcoin and any other currency in the world is the acceptance and adoption by people in the world or in such countries that the currency serve as the mode of payment for goods and services.
Aside from that to be used by some companies just like in retail and real estate companies to accept bitcoin, if that happens many would become curious and would be aware what bitcoin is so the demand will increase more, let us help also by encouraging people about this.
Intrinsic value of Bitcoin and any other currency in the world is the acceptance and adoption by people in the world or in such countries that the currency serve as the mode of payment for goods and services.
there may be some value in this electronic product because (a) you may use it for payment and (b) there may be some value from this blockchain and its ability to decentralize, verify transactions
Honestly, I was impressed with this good informative, Moreover, bitcoin has become of great value in this period and it has become widespread worldwide, and the technology of blockchain has many advantages, especially for financial transactions that have become easy and inexpensive, in contrast to other currencies of countries (FIAT such as, Euro, Dollars..).
On the other hand, I am pretty sure that bitcoin will become more successful despite all the enemies who always aspire to destroy it , and I agree with the OP for the losers, the governments are the biggest losers because they cannot control the transaction of money in bitcoin , and if the popularity of bitcoin will increase then it sure that the financial losses will continue on the economy of some countries and the biggest affected is the banks.
On the other hand, I am pretty sure that bitcoin will become more successful despite all the enemies who always aspire to destroy it , and I agree with the OP for the losers, the governments are the biggest losers because they cannot control the transaction of money in bitcoin , and if the popularity of bitcoin will increase then it sure that the financial losses will continue on the economy of some countries and the biggest affected is the banks.
I think we who are so long with bitcoin, will not feel weird about bitcoin that can be developing well, affected many factors, and valuable among many people, which's like promising profits to everyone.
Attacks and supports are already increasingly visible, the point here is that we really need to be able to keep its good name, to be recognized in our own each country as a currency that's feasible to use without having high risk or harm to the country.
What do you give the recognition of bitcoin by the government? The government will not allow using bitcoins as a currency because it is bad for the economy. You will be obliged to pay taxes on any income in bitcoins. Maybe even forced to register a bitcoin account in order to track them. Why do you need all this? Attacks and supports are already increasingly visible, the point here is that we really need to be able to keep its good name, to be recognized in our own each country as a currency that's feasible to use without having high risk or harm to the country.
I think we who are so long with bitcoin, will not feel weird about bitcoin that can be developing well, affected many factors, and valuable among many people, which's like promising profits to everyone.
Attacks and supports are already increasingly visible, the point here is that we really need to be able to keep its good name, to be recognized in our own each country as a currency that's feasible to use without having high risk or harm to the country.
Attacks and supports are already increasingly visible, the point here is that we really need to be able to keep its good name, to be recognized in our own each country as a currency that's feasible to use without having high risk or harm to the country.
Yeah the old theory of demand & supply determine bitcoin prices and other alternative coins beside development announcement that was clear after every fork applied in bitcoin blockchain .
Because only depend on supply and demand, bitcoin value is volatile and "easy" to being manipulated by some group of early whale trader.
The fact is people on this digital era need somekind of currency that fit with their need and bitcoin become the savior !
Hope my government can see the positive side of bitcoin rather than negative.
Bitcoin depends mainly on the supply and demand. In my opinion, we cannot evaluate Bitcoin, the Bitcoin is only priced by supply and demand law, not much utility. Bitcoin share many characteristics of currency. For that reasons, we can only say we trade Bitcoin, not invest Bitcoin.
Because of limited supply, the volatility of Bitcoin will never be eliminated. In terms of fiat, the central banks often stablize the fiat value by controlling the supply, that method cannot be used for Bitcoin
Yes bitcoin is still main stronger is from supply and demand, when supply and demand high, the value will be increase fast.
Valuation of bitcoin can't be eliminated, it will increase every years. But I sure in this era bitcoin can more popular, because in the future more people use digital/virtual currency for payment.
Yeah the old theory of demand & supply determine bitcoin prices and other alternative coins beside development announcement that was clear after every fork applied in bitcoin blockchain .
Because only depend on supply and demand, bitcoin value is volatile and "easy" to being manipulated by some group of early whale trader.
The fact is people on this digital era need somekind of currency that fit with their need and bitcoin become the savior !
Hope my government can see the positive side of bitcoin rather than negative.
Bitcoin depends mainly on the supply and demand. In my opinion, we cannot evaluate Bitcoin, the Bitcoin is only priced by supply and demand law, not much utility. Bitcoin share many characteristics of currency. For that reasons, we can only say we trade Bitcoin, not invest Bitcoin.
Because of limited supply, the volatility of Bitcoin will never be eliminated. In terms of fiat, the central banks often stablize the fiat value by controlling the supply, that method cannot be used for Bitcoin
Yes bitcoin is still main stronger is from supply and demand, when supply and demand high, the value will be increase fast.
Valuation of bitcoin can't be eliminated, it will increase every years. But I sure in this era bitcoin can more popular, because in the future more people use digital/virtual currency for payment.
The price of bitcoin varies as supply and demand. Prices change and increase ...
It seems to me that this is a very controversial theory. The price of bitcoin is affected by the cost of its production. A lot of coins people change to altcoins. For this reason, the value of altcoins also affects the price of bitcoin. Finally, the price of equipment for mining bitcoins and altcoins and the price of electricity is also of great importance. This makes the price of bitcoin volatile and difficult to predict.
The price of bitcoin varies as supply and demand. Prices change and increase ...
It seems to me that this is a very controversial theory. The price of bitcoin is affected by the cost of its production. A lot of coins people change to altcoins. For this reason, the value of altcoins also affects the price of bitcoin. Finally, the price of equipment for mining bitcoins and altcoins and the price of electricity is also of great importance. This makes the price of bitcoin volatile and difficult to predict.I think the valuation of bitcoin depends on what the needs of supply or demand arises. I mean the valuation of this bitcoin arises if the demands increases.
absolutely right. The price of bitcoin varies as supply and demand. Prices change and increase ...
It seems to me that this is a very controversial theory. The price of bitcoin is affected by the cost of its production. A lot of coins people change to altcoins. For this reason, the value of altcoins also affects the price of bitcoin. Finally, the price of equipment for mining bitcoins and altcoins and the price of electricity is also of great importance. This makes the price of bitcoin volatile and difficult to predict.The price of bitcoin varies as supply and demand. Prices change and increase ...
It seems to me that this is a very controversial theory. The price of bitcoin is affected by the cost of its production. A lot of coins people change to altcoins. For this reason, the value of altcoins also affects the price of bitcoin. Finally, the price of equipment for mining bitcoins and altcoins and the price of electricity is also of great importance. This makes the price of bitcoin volatile and difficult to predict. Yeah the old theory of demand & supply determine bitcoin prices and other alternative coins beside development announcement that was clear after every fork applied in bitcoin blockchain .
Because only depend on supply and demand, bitcoin value is volatile and "easy" to being manipulated by some group of early whale trader.
The fact is people on this digital era need somekind of currency that fit with their need and bitcoin become the savior !
Hope my government can see the positive side of bitcoin rather than negative.
Bitcoin depends mainly on the supply and demand. In my opinion, we cannot evaluate Bitcoin, the Bitcoin is only priced by supply and demand law, not much utility. Bitcoin share many characteristics of currency. For that reasons, we can only say we trade Bitcoin, not invest Bitcoin.
Because of limited supply, the volatility of Bitcoin will never be eliminated. In terms of fiat, the central banks often stablize the fiat value by controlling the supply, that method cannot be used for Bitcoin
[What is the value in use of Bitcoin and who gets it?]
The intrinsic value of Bitcoin resides in its forgery-proof nature and its scarcity. Block-chain technology protects Bitcoin from fraud, forgery, and hacking. In addition, it is not backed by a national government, so no national government can control its supply and harvest seigniorage, the profit a government obtains by issuing its currency. National governments can control only demand.
Who gets the seigniorage by issuing Bitcoin? Those who offer (mine) bitcoins initially get the seigniorage profit. Others purchasing bitcoins at the secondary market, as stock investors, can earn capital gains or experience economic loss. Bitcoin investors are no different from usual investors pursuing capital gains by purchasing whatever rare.
Very informative piece in general - did not know about the seigniorage thing for governments. However, you should also add that anonymity is a major value creator for Bitcoin. You can say that because of this anonymity feature that is why the demand for Bitcoin is high; so in a way they are tied together.
Bitcoin has reversed its decline as miners began to use new software that has resolved its assessment problem, a problem that has persisted for more than two years and has sparked a split over the virtual currency.
It is impossible to apply traditional methods of price calculation such as those used in the stock market to bitcoin. This does not mean that bitcoin has no real value. There is the price of electricity required for its production, there is the cost of equipment. All this is what fills bitcoin with real money and makes it a part of the global economy. But there is a large amount of speculative capital that is invested in bitcoin. Speculators can withdraw their capital and real capital in the form of profit. Then the price of bitcoin can go down to zero.
It is hard to get a value a Cryptocurrency. Here are some parameters on which valuation of a crypto currency can easily be done like crypto-utility, Network value to transaction ratio(How active users are?), Investor Vision, Daily active users, Qualitative analysis like Team, Whitepaper, Blockchain strength etc.
Is it really that expensive?
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