Topic: What is Bitcoin's fair value? - page 3. (Read 1723 times)

We could not determine any particular value as fair value of bitcoin.Just as gold price increases or decreases with change in demand,same would be with bitcoin.Its price is affected either positively or negatively by the market factors.Japan legalized bitcoin and thousands of retailers started accepting bitcoin payment triggering its price.China's ban on ICOs made bitcoin price to fall a little temporarily.Bitcoin's potential is that it deserves more price than what it is today.

Bitcoin's fair value is whatever the market says it is. It depends on various factors such as the market cap, how many Bitcoins are in existence, etc. One of the most important value factors of BTC is its retail usefulness, that is how many online stores actually accept it as a method of payment for their products/services, and also in-person.

So long as anyone buys it in it's current price it is it's fair value since there is no way to determine the real fair value of bitcoin. If it dumps, that is the sign that the price as of the moment has been to high. If it pumps, then all that means is that bitcoin's fair value increased. If there is a way to determine it logically, then it would be easier to tell which price is it's fair value but for now let us just say that the current price is it's fair value.

There is no reasonable way to price Bitcoin. It all depends how many uses will be found for it and whether some other digital money will become more popular. But the price will probably get more stable once the market capitalization is getting bigger.Bitcoins value is only based on people speculation.

It has a fair value currently there hasn't been any downfall lately and it is only rising as long as the price of bitcoin is rising i surely think it is a fair price but when it starts getting dumped thats the moment i feel it should increase

You have tackled some good points on that post. But the biggest problem is, in cryptocurrency there is no such accurate data gathering not like most stock investments. We can’t even account the bitcoin that Nakamoto have or if it being sold. The fair value can be calculated upon the demand + the availability of such item but bitcoin even have the exact 21+ million supply but to know where and if it was not lost is a different scenario.

It is really difficult to put a fair value for bitcoin,there were many analyst who claimed that the price would touch $10000 in ten years time,and the basis of this assumption is that there would be more investments during this time and hence the price would increase,what happens if the rate of investment increases rapidly as we see today,the price just blooms ,since it is limited in number it is hard to set a fixed price,the more people are investing in it ,more the price will be.

If anyone has heard of Norton antivirus founded by Peter Norton. Here's an interesting quote he made in the early days of IT security.


It is possible that a lot of things said about bitcoin are similar to what people said in the early days of computer viruses when many thought they were a hoax or myth & refused to believe they existed until hard evidence became distributed years later. Crypto is a new and emerging technology. People try to place expectations upon it based on what they know about existing technologies like the stock market but overall it may be futile.

Offhand I can think of examples where stocks exhibited 300 times growth. After the economic crisis of 2008 there were bank stocks priced @ $0.01 which rose as high as $3.00 after the bailout bill was announced, 300 times increase in value. These types of massive price increases have been known to happen under special circumstances and aren't as impossible as some claim.

If I remember correctly the zimbabwe dollar gained incredible value, more than 300 times growth(?), as it rebounded from its last hyperinflation. The venezuelan bolivar could potentially sustain incredible growth, greater than 100 times value in 1 year, if venezuela's economy stabilizes and recovers. Massive increases in price or value may not be as rare or extraordinary an event as some believe.

It is difficult to determine the fair price of Bitcoin. Why did not have stabilized anymore. It is difficult to say whether the price will be fixed in the future.

This strategist's comment is so theoretical it's almost a joke.

There is a right and wrong Bitcoin price. The test of that is whether anyone in the world would accept a bitcoin for any price above face (right now). Most people would accept bitcoin for a small premium because they'll have faith that the price would soon pass their buy price, but it's only a small amount of premium that would be accepted.

Would you buy my 1 bitcoin for $10,000? No. You'd say "that's the wrong price!"

This strategist just doesn't know how to value a currency that isn't backed by the GDP of a country. That's all it is.

The current value it's a fair value based on trading price and i think it should be valued 7300$ for 1 bitcoin, people will define the value of cryptocurrency and it possible can be even biger value

Think of the larger outside force controlling all this: the unrestrained global supply of fiat currency/credit...too much pumped in too many hands

Ordinary people couldn't possibly invest billions every day, big companies wont take such risks to invest on Bitcoin like now. central banks with the help of their governments are pushing the price up, they know if you have the majority of the circulating supply, you could seize control of the market flow.
Bitcoin has no fair value, Bitcoin is trying to be a vault for money, not just any money but all the money in the world.

Pretty much this, because with no Balance sheet and earnings to report from you have no way of assigning proper value. And for this reason you must revert to the simple laws of supply and demand to determine a fair price.

This price may not be accurate at what an actual bitcoin is truly worth but given it is the price the market will pay for a bitcoin then yeah I think this is as close as we get towards a fair price point.

This rise in price of bitcoins is mainly because of the upcoming fork segwit2x which would have deep impact on bitcoins and many people has started to invest more and more in bitcoins as it is predicted that after fork bitcoins will increase.Well i don't think so that bitcoins will have a fixed fair value as price of the bitcoin is depended on the demand from the people so how much a person is will to give will be generally the price of a thing.But I do think that this price is because of fork so there would be correction after this fork and that price would be fair value for that time.Fair value would keep on changing as more people invests in bitcoins.

The fair value of bitcoin is the price that people are willing to pay for it. Right now it is around $7200

How can there be a "fair" value for bitcoin.

In the first place, there isn't even a tangible bitcoin; it is just a digital entry in a public internet file - the blockchain. The price of bitcoin is just the spot price in any trading platform. So at any time - as long as there is a "fair" global spot market - there is a spot price; it is neither fair nor unfair. Without the internet, there is not even a price for bitcoin.

Even physical gold does not have any fair price, only what the buyers/sellers quote.

As long as there is need for it and people tend to make use of it the more, then the value at that stage would always be fair. For example, in Zimbabwe, the government implemented a control policy where the citizens cannot do any international transfer except local transfer as there is low supply of cash since they had to depend on making use of the USD for now with their own bad currency.

People then, started shifting to bitcoin as the only means for international transfer, for businesses and international trading which has made bitcoin to be trading above $12,000. That is what the demand for it over there has caused and that is fair considering that someone is willing to pay for it at that price due to its usefulness.

I have a lot of things to say, though I don’t really know how to put cause I’m not an economist, but first I will start by saying there is no fair value for Bitcoin. Yes, there is no fair value, whatever you see there is the value, nothing like fair and unfair. I don’t know how price is being determined, so I can’t really tell.

One thing I know is that I see people say that price is being determined by how much people are investing and stuffs like that. And my question is who is ready to buy at a rate that is too high, cause you said the value is determined by what people are willing to buy.

Bitcoin has no definite value, it is designed to fluctuate to make opportunities to the user, this is the most indulging part of making btc business, Lets expect more, and will eventually lift our motivation to dig more,