How to value a currency

[desper]

P.S. This also explains why people are hoarding BTC rather than spending them. The expected future value of a BTC is higher than its value today--so why spend it today?

[myrkul]

...I tend to side with the OP as I feel I get more explanations for the viewpoints given.

"For every complex problem there is an answer that is clear, simple, and wrong."

--H. L. Mencken

I'd be glad to explain in greater detail anything you don't get, but I'm afraid there's no simple equation you can plug some variables into to get the value of a currency. Value is subjective, and each person will value a currency a different amount. The purchasing power/price of a currency is a result of these subjective valuations interacting.

[counter]

...I tend to side with the OP as I feel I get more explanations for the viewpoints given.

"For every complex problem there is an answer that is clear, simple, and wrong."

--H. L. Mencken

I'd be glad to explain in greater detail anything you don't get, but I'm afraid there's no simple equation you can plug some variables into to get the value of a currency. Value is subjective, and each person will value a currency a different amount. The purchasing power/price of a currency is a result of these subjective valuations interacting.

Not saying your wrong just saying what I felt after a short read threw I have to go over the thread again before I had any real questions to ask.  Thanks for offering to explain further.

[Chalkbot]

Well, it's tough to say when you are valuating a relatively new and deflationary currency with an old and outdated deflationary currency that is teetering on the brink of hyperinflated collapse. Given those facts alone, it's hard enough to determine a "Spot price", when you start talking future value, you are trying to quantify adoption rate of the new currency, and inflation of the old one at the same time. But it's not even that simple either, because bitcoin is global. The shittyness of many of the world's currencies needs to be factored in. How soon until the next Euro bailout? 'Cause that will add about $60 value, apparently. Currency war coming? Hmm, tack on another $50? $100? Shit, I don't know. At some point it's futile to even measure a BTC vs USD. Has anyone bothered to figure out how many shells a BTC is worth? My guess is nobody cares, and if they still had a portion of their savings in shells or pelts, they would probably trade it all for 1 BTC.