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Title: [2016-09-27]Bitcoin is Undervalued as Volumes of Over-The-Counter and Exchange.. Post by: WishICanTurnBackTime on September 27, 2016, 01:21:00 PM Bitcoin is Undervalued as Volumes of Over-The-Counter and Exchange Markets in China Show Strict financial regulations imposed on local traders and investors in China disallow investments in assets outside of the country’s borders. High profile traders and traditional investors are turning to Bitcoin as an alternative asset. Unlike most traditional forms of assets and investment tools in China, Bitcoin is unique in a way that investors and traders can simple move the Cryptocurrency out of the country without any borders or boundaries. Since smuggling the Chinese Yuan, gold, or any other precious metals is strictly illegal in China, investors often struggle to deal with issues in moving their wealth out of the country. https://cointelegraph.com/news/bitcoin-is-undervalued-as-volumes-of-over-the-counter-and-exchange-markets-in-china-show Title: Re: [2016-09-27]Bitcoin is Undervalued as Volumes of Over-The-Counter and Exchange.. Post by: yayayo on September 27, 2016, 02:32:03 PM In my opinion valuation should be based on something other than pure speculative potential. The question if Chinese investors might en masse discover Bitcoin as a method for capital flight is an entirely theoretical one. It's not attached to any fundamental properties of the Bitcoin economy in any way. Chinese investors might prefer an entirely difficult method for that purpose and never resort to using Bitcoin.
Bitcoin's market valuation depends on usage, i.e. especially businesses accepting the currency and people using it to purchase goods and services. This is definitely a growing trend. So in that regard I think it's safe to say that Bitcoin's value perspective is positive. However it's impossible to say how much of Bitcoin's possible future use is already priced in today and there is no criteria to measure nor compare Bitcoin economic activity and "fair" market price. ya.ya.yo! |