Fundamental value of a BTC

[blazespinnaker]

Curious, what formula would you use to value the BTC?    Number of transactions?   Number of individual addresses?  Hash rate?

http://blockchain.info/stats

[melon]

cost per transaction $8.97 cents.... if that's what it cost in computing power consumption then that would be a floor I suppose plus profit margin of 67 percentas staed would be ... idk...who knows?

[calebrulez]

Right now, its what the other guy is willing pay. because people are using btc as a commodity like gold, because it shares two very important traits of a commodity 1. You can't easily fake it and 2. its rare, only 21million, 1/2 is out and other 1/2 will be mined at a exponentially slow pace, which is think is silly and a passing fad. It will stabilize once people start using it as a currency which is what you use buy a precious commodity and hoard it.

[blazespinnaker]

Not sure if it will ever stabilize as people will lose BitCoins.

21 million isn't a lot.

I agree though, I think # of transactions (specifically those not including mtgox and friends) are the best way to value it.

[tredel]

Not sure if it will ever stabilize as people will lose BitCoins.

21 million isn't a lot.

I agree though, I think # of transactions (specifically those not including mtgox and friends) are the best way to value it.

21 million isn't a lot, but once it reaches 21 million, i think it goes into 9 decimal places.


so lets say its capped at 21 million, each bitcoin is 500$.


.01 bc, .0000000001 bc,   different values, different sized transactions are available.