"The price of your bitcoin is 1000 times overvalued"

[Doofus]

the first mistake this guy is making is calling it a currency. it really isn't for now. for most people it's an asset.

the problem is if asset can not flow freely, than what's the point for holding such an asset?

[Doofus]

Who can say that Bitcoin price is overestimated? It's the market and the factors that influence it who deteremines the Bitcoin price. Price is volatile and changes all the time and despite some theories I don't think the price could be deliberately manipulated. Besides, I don't think that high value could harm Bitcoin.

His point is that the value of one currency=the scale of circulation of the currency=the reach of government control. He also mentioned that what's behind each currency is seigniorage. You can read the whole story here: http://news.8btc.com/the-price-of-your-bitcoin-is-1000-times-overvalued

[Doofus]

I don't agree with him that bitcoin is overvalued in terms of price because we can't get to this price point if there is no real support from the users or investors of bitcoin. Bitcoin is a controlled free currency and its price is always depending in the market so there is no proof that bitcoin is really overvalued.

If bitcoin is overvalued then there is a lot of bitcoin users, holders and investors are doing panic selling because the price is not stable when overvalued. So i highly believed that bitcoin is not overvalued and it deserves what its current price now.

it's exactly about the market. So his point is tt adoption=market, if the current adoption is limited, than the market is small.

[pleaseexplainagain]

how much does a bitcoin worth?
Some say:“Worthless. It’s just a Ponzi scheme.”
Some hail:“Priceless! It’s the future of money.”
A Chinese economist Ou Chengxiao,  often nicknamed”Ou Guru” said yesterday "The price of bitcoin is 1000 times overvalued". He believed that the value of currency is decided by its scale of circulation, or adoption. But now the lack of businesses that accept the digital currency as payment has been holding bitcoin back from wider adoption. not so many people are buying things with btc.
 i am a little confused why he is so sure bitcoin price is 1000 times overvalued. why not 100? 10? why exactly 1000? Do you agree with him?

It's possible that the price of bitcoins is based on a demand only. What I mean is that people may want bitcoins for the potential and are demanding it as an investment which makes the price go up. But if people want it for that price, then isn't that what it is worth?

I happen to think bitcoin is way "overvalued " but not 1000 times in that i think at least 80% of its current price is speculators  but in a way it does not really matter.

Take me as an example. I own about $8,000 worth of bitcoin. I have $5,000 worth to use eg send to family, friends overseas in an emergency (as a sort of western union). I see $5000 would get a plane ticket out or an operation etc if no travel insurance etc.

The other $3000 is to have just in case the price goes up big time.

Now say the price "crashes" to $200 which is where I think it "should" be. To have the $5,000 worth set aside I then need 25 bitcoins and I have only 8. So i will buy at least 17 more to get back to where I need to be. 

I think there would be alot of people out there like me ie have good reasons to buy more bitcoins as the price drops by a decent amount ie at least say 40%.

So aside from speculators creating "demand' actual bitcoin users will also create demand so it is not overvalued by 1000 times

[Mervyn_Pumpkinhead]

He doesn't weigh in the utility that bitcoin has in the black and grey markets. The myth of bitcoin becoming a practical tool of finance has been debunked in professional financial circles years ago already. But still there are a lot of shenanigans going on that are attracted to the unregulated and opaque nature of the bitcoin market system. Illegal money is the invisible pillar that is holding up the price. If it would be pure speculation, then it would have collapsed already.

[maku]

i do laugh at those that only care about a future FIAT value while pretending "banks are bad, governments are bad"

I share your opinion, but we also can't focus on Bitcoin alone and detach ourselves from linking it to fiat, not yet.
We don't and we won't have "bitcoin only" economy, not in the foreseeable future.
I don't want to focus on fiat to btc value relation, but I have no choice, although flawed by design, this is the only benchmark we have.

[Mervyn_Pumpkinhead]

i do laugh at those that only care about a future FIAT value while pretending "banks are bad, governments are bad"

I share your opinion, but we also can't focus on Bitcoin alone and detach ourselves from linking it to fiat, not yet.
We don't and we won't have "bitcoin only" economy, not in the foreseeable future.
I don't want to focus on fiat to btc value relation, but I have no choice, although flawed by design, this is the only benchmark we have.

Bitcoin needs fiat because fixed supply just doesn't work with a currency. The dynamic development and progress of the economy always needs dynamic supply of currency, because without it, there would be no value stability. And the lack of value stability is the criteria of a low quality currency. Even high inflation is better if it's devaluation is happening in a predictable rate. Unpredictable value is the worse, because it's impossible to make any future estimates while using an unpredictable value currency as a point of reference. If you make your calculations for a 3 year long project with currency, that can go -+500% in that time-frame, then you're gonna have a bad time.
A lot of youtube educated bitcoiners try to demonize not only banking in general, but also all the economic and financial practical issues that counteract with their hopes of becoming rich by bitcoin speculation.

[hase0278]

I agree with him that bitcoin price is overvalued but I don't think that it is 1000 times overvalued. Maybe the current price we have now is not the real value of bitcoin as a currency but rather we see now the value of bitcoin as an asset and a currency. Many treats it like an asset to buy and sell for profit in terms of fiat so it really is overvalued at some point because there's a manipulation by some people.

[Lorilikes]

i do laugh at those that only care about a future FIAT value while pretending "banks are bad, governments are bad"

I share your opinion, but we also can't focus on Bitcoin alone and detach ourselves from linking it to fiat, not yet.
We don't and we won't have "bitcoin only" economy, not in the foreseeable future.
I don't want to focus on fiat to btc value relation, but I have no choice, although flawed by design, this is the only benchmark we have.

^^ Brilliantly stated,  I absolutely needed to read those words today, Maku.


Bitcoin needs fiat because fixed supply just doesn't work with a currency. The dynamic development and progress of the economy always needs dynamic supply of currency, because without it, there would be no value stability. And the lack of value stability is the criteria of a low quality currency. Even high inflation is better if it's devaluation is happening in a predictable rate. Unpredictable value is the worse, because it's impossible to make any future estimates while using an unpredictable value currency as a point of reference. If you make your calculations for a 3 year long project with currency, that can go -+500% in that time-frame, then you're gonna have a bad time.
A lot of youtube educated bitcoiners try to demonize not only banking in general, but also all the economic and financial practical issues that counteract with their hopes of becoming rich by bitcoin speculation.

Mervyn,
You are probably not wrong about the YouTube educated generation, of which I am a slightly embarrassed member. We do tend to dream a tad too far out of the bounds of reality, and I had not heard this perspective yet, believe it or not. It isn't so much that I aim to demonize traditional fiat, but I predict the methods in which traditional banking accounts for transactions will change forever.  I know the adoption of a more clever way of reconciling the ledgers is altering the operation of all finance.  I am talking about the functions introduced through our Blockchain, and of course the beloved centerpiece of the publicly distributed ledger, Bitcoin.

So I suppose I should say Banks will be forced to adopt blockchain type technology because it is a better way for consumers to properly account for their consumption, and a better way to keep transactions in the daylight where all hands on deck can be seen, and must be clean.

[CHRISBIN702]

I disagree. It's not overvalued, it's valued, plain and simple. What is a US Dollar worth? Or a penny? You might say a Dollar is worth a Dollar. But Why? Because we agree that it has value. A penny, in actuality is worth 1.5 cents if you base it's value of how much it costs to make. Bitcoin is worth whatever we agree it is worth. It can not be overvalued. But it can be over priced.

[BitMaxz]

Do you mean he is so sure about 1000 times of the price of bitcoin?
I think its too much for bitcoin.. even we are all using it and more investors are come the price of bitcoin will never increase in 1000 times
It is too high price.. maybe possible that i think the price can be 10 times value from the price today to the future..
And it never overvalued.
Expect for more price increase will happen but not so much fast the same as the chinese who thinking about 1000 times..
It will be still in the market if how the movement of the price will be. .

[rajasumi3]

He is totally wrong in saying that the price of bitcoins is too much overvalued and it being a ponzi scheme.well bitcoins has been accepted as a mass and well people would not buy stuffs with bitcoins so soon,well it would need for the people to be educated and make them understand the value of bitcoins.
media should play a role in promoting bitcoins,so that it should be used by masses.

[DrGuns4Hands]

I've been using bitcoin several years and I'm gonna say that bitcoin is actually overvalued. but still im hoping that bitcoin price could actually hit $1500 but still I started bitcoin when the price of it is around $500 and now it will become triple than before anytime soon . so I like to pleased that bitcoin must balanced the price in order the other can afford bitcoin but that would literally made all riches guy to buy again bitcoin and stock it . Still looking forward to bitcoin

[The_prodigy]

Bitcoin are very worth for me , they had bad experience countering bitcoin regarding their investment but we can see the real future that has bitcoin now. Almost of half of bitcoin website investment are ponzi scheme where they telling people that they will give good return of there investment to invite people too invest after that or running their website for 1 day it will turn into scam.

[pitham1]

So a Bitcoin should actually be worth $1? That is ridiculous.
Some millionaires like Draper would be able to buy up all the bitcoins in the world. That is not going to happen any time soon.

[Prem.Soorajpaul]

So a Bitcoin should actually be worth $1? That is ridiculous.
Some millionaires like Draper would be able to buy up all the bitcoins in the world. That is not going to happen any time soon.

Don't listen to him. He seems to be having a grudge against Bitcoin and may be promoting some altcoin instead. A currency being used by 7 to 8 million people is worth much more than $20 billion in market capitalization.

[rickadone]

i am a little confused why he is so sure bitcoin price is 1000 times overvalued. why not 100? 10? why exactly 1000? Do you agree with him?

Gold is just a metal and diamond is just a stone, why not we call their value too as overpriced ? Unlike crypto currency, gold/Diamonds are being valued by every part of this world ? All these people are so childish to value just a metal or a stone ?

Your old shirt will get millions of dollars in an auction if you are a rockstar. Yes, demand determines everything. Bitcoin has demand and it has value. There is no meaning of arguing it is 1000x more valued, there are people ready to buy with 1000x more so it has those values.

[Prem.Soorajpaul]

i am a little confused why he is so sure bitcoin price is 1000 times overvalued. why not 100? 10? why exactly 1000? Do you agree with him?

Gold is just a metal and diamond is just a stone, why not we call their value too as overpriced ? Unlike crypto currency, gold/Diamonds are being valued by every part of this world ? All these people are so childish to value just a metal or a stone ?

Both gold and diamond are having value as collectibles. For them, the demand is always greater than the supply. Once the supply is able to overtake the demand, the value of gold and diamond will come down. Same is the case with BTC as well. As long as there is demand, it will be having value.

[Ahab_Hunter_of_BearWhale]

I'm starting to wonder about the guru part. He's making a simple logical mistake, saying egg is not chicken therefore egg cannot become chicken. Part of speculation is expected future value, which can tie in with expected future rates of adoption.
If he's basing his valuation solely off of current adoption, (even if we discount considerations about the future) it seems clear that BTC's current adoption wouldn't warrant the price to be 1000 times less than it's current standing.
Yes an egg is not a chicken xD But as Dogen said "You do not call winter the beginning of spring, nor summer the end of spring." First there is winter then there is spring, then summer.
To say Spring will surely not come, cannot come because it is winter is simular to saying egg will not become chicken, but if it is winter it seems fairly certain spring will come xD

[cpfreeplz]

i am a little confused why he is so sure bitcoin price is 1000 times overvalued. why not 100? 10? why exactly 1000? Do you agree with him?

Gold is just a metal and diamond is just a stone, why not we call their value too as overpriced ? Unlike crypto currency, gold/Diamonds are being valued by every part of this world ? All these people are so childish to value just a metal or a stone ?

Your old shirt will get millions of dollars in an auction if you are a rockstar. Yes, demand determines everything. Bitcoin has demand and it has value. There is no meaning of arguing it is 1000x more valued, there are people ready to buy with 1000x more so it has those values.

^this. There may be a bubble, that's impossible to tell until after the point but we're definitely nowhere near 1000x overvalued hahaha. To say that just makes you sound like incompetent newb in the whole aspect of cryptocurrencies.