Is Bitcoin currently massively undervalued?

[andrei56]

Maybe in 10 years people will say ' I wish I invested in bitcoin back in 2017'

I will take off the ‘maybe’, people are going to regret not investing at this moment or any moment prior to this date, bitcoin seems that is going to do very well in the future, I expect that the price will hit 5 figures in the next 10 years, and maybe even sooner than that.

[fabiorem]

Correct value for bitcoin at this moment is 100k dollars.

It IS undervalued, extremely undervalued, due to ego-fighting between weak effeminated freaks.

[andrei56]

It was undervalued last week but since the 1000$ increase everyone seems happy with the current price it well again maybe because of the splitting in chains but i hope after this splitting is done the price may increase and this time the increase will be straight to 3000$

No, I'm not sure about the future of bitcoin, however, with the division, the bitcoin value will be reduced, with two different currencies, bitcoin only half the value. That is what makes me nervous.

Do not worry bitcoin cash is not really a threat to bitcoin, bitcoin is going to keep most of its value, but as soon as that altcoin disappears the full potential of bitcoin is going to be unveiled to the world and I think we are bound to see a huge increase in the price after that.

[d5000]

Correct value for bitcoin at this moment is 100k dollars.

It IS undervalued, extremely undervalued, due to ego-fighting between weak effeminated freaks.

I don't think so It's more: The current use of Bitcoin does not even justify $1000, if you apply the Quantity Theory of Money, like this forum member did (his estimation for a fair price is about $200-250).

But I think all users that bought Bitcoins for more than - let's say - $500 are speculating that in the future there will be a much larger user base. But $100K would be already a order of magnitude where we would need a large portion of the world population using Bitcoin regularly. And I think it's not at all sure that that will occur.

We can do the math: If for the current user base (5-10 million) $250 is the "fair price" according to the QTM, then for a fair $2500 price we would need 50 to 100 million users (currently impossible without advanced scaling features or a massive block size increase to 10 MB or more), and for $100000, 2 to 4 billion.

[williamuk]

Correct value for bitcoin at this moment is 100k dollars.

It IS undervalued, extremely undervalued, due to ego-fighting between weak effeminated freaks.

I don't think so It's more: The current use of Bitcoin does not even justify $1000, if you apply the Quantity Theory of Money, like this forum member did (his estimation for a fair price is about $200-250).

But I think all users that bought Bitcoins for more than - let's say - $500 are speculating that in the future there will be a much larger user base. But $100K would be already a order of magnitude where we would need a large portion of the world population using Bitcoin regularly. And I think it's not at all sure that that will occur.

We can do the math: If for the current user base (5-10 million) $250 is the "fair price" according to the QTM, then for a fair $2500 price we would need 50 to 100 million users (currently impossible without advanced scaling features or a massive block size increase to 10 MB or more), and for $100000, 2 to 4 billion.

Thanks for linking to this, this should help some see how much damage has been done to bitcoin these past few years.

That graph in particular is worth a thousand words (and a lot of risk capital too  )

[andrei56]

Correct value for bitcoin at this moment is 100k dollars.

It IS undervalued, extremely undervalued, due to ego-fighting between weak effeminated freaks.

I don't think so It's more: The current use of Bitcoin does not even justify $1000, if you apply the Quantity Theory of Money, like this forum member did (his estimation for a fair price is about $200-250).

But I think all users that bought Bitcoins for more than - let's say - $500 are speculating that in the future there will be a much larger user base. But $100K would be already a order of magnitude where we would need a large portion of the world population using Bitcoin regularly. And I think it's not at all sure that that will occur.

We can do the math: If for the current user base (5-10 million) $250 is the "fair price" according to the QTM, then for a fair $2500 price we would need 50 to 100 million users (currently impossible without advanced scaling features or a massive block size increase to 10 MB or more), and for $100000, 2 to 4 billion.

Things are never so simple, we know that if we think of the actual uses of bitcoin at the moment, then we can come to the conclusion bitcoin is overvalued, but if we think of the possible uses that bitcoin may have in the future then bitcoin is undervalued.

[Pierre 2]

It is hard to measure real worth of bitcoin without adding speculations to calculation.
It is actually overvalued, not under, yeah. But lots and lots of people think bitcoin as one of the most profitable tools in economy and easiest way of money transfer.

[xIIImaL]

It is hard to measure real worth of bitcoin without adding speculations to calculation.
It is actually overvalued, not under, yeah. But lots and lots of people think bitcoin as one of the most profitable tools in economy and easiest way of money transfer.

Overvalued seems funny about your thought. As satoshi speculates bitcoin is still not that much value now. It will touch to 10000$ in 2020 I guess. We need to huge adoption and blockchain based projects come up to find the higher price in future. What people as you are saying also correct and you can also do the same.

[d5000]

Things are never so simple, we know that if we think of the actual uses of bitcoin at the moment, then we can come to the conclusion bitcoin is overvalued, but if we think of the possible uses that bitcoin may have in the future then bitcoin is undervalued.

That's what I wanted to say with my last post.

We don't really know if Bitcoin will reach real mass adoption (with "mass adoption" I mean hundreds of millions of users). Only in this case, Bitcoin is worth what it is now, and will be worth more in the future.

The reason we are seeing the current bull market is related: Segwit is seen as a measure that could be the first step for mass adoption. It will already make possible an user base of up to 15 million people (now about 7 million are estimated, and Segwit doubles the transaction capacity), and if smaller transactions are covered by LN, I estimate the blockchain could handle about 50 million users. With Segwit2x, if we continue this simple calculation, 100 million users are possible - that would justify a price of $2000. But obviously that is not the final scaling step - in my opinion, sidechains will be the measure that makes billions of users possible. And then the "price window" for BTC is open for prices up to $100.000

[ajmapalo22]

Bitcoin is not undervalued nor overvalued it's just that the price set for bitcoin depend on the demand and users, it fluctuates from time to time base on how it affects the market. I guess there's no particular value can be set permanently for bitcoin we all know there is only fixed number of bitcoin circulating the market so if users will have to increase or decrease the value of bitcoin will depend on that. But as of now it's really obvious that more and more people are getting interested and trying to use bitcoin so I think the value will continue to rise in the future

[NavySeals]

no.

value comes from more people and more use. not enough of either is here yet.

almost all of the price is in anticipation of more of the above.

in terms of future potential you could possibly say that. but then again if the potential goes unfulfilled you could say it's ridiculously overvalued right now.

What you're saying is totally right about the consideration the value of bitcoin nowadays. We can't claim that it's massively undervalued since there is not big number of users and adopters. We still need more time to say bitcoin is undervalued. On the other hand, almost 3k usd per bitcoin is pretty high to me.

[richardsNY]

We still need more time to say bitcoin is undervalued. On the other hand, almost 3k usd per bitcoin is pretty high to me.

Bitcoin has been stated to be undervalued for years now, and if you look where we stand right now, it's pretty obvious that aside from what might happen in the short term, Bitcoin is always undervalued. If people talk about Bitcoin being under/overvalued, they should always have the long term in mind. Short term wise it's practically impossible to properly say that Bitcoin is under/overvalued due to the volatility and sentiment changes that can happen instantly.

[thecodebear]

Correct value for bitcoin at this moment is 100k dollars.

It IS undervalued, extremely undervalued, due to ego-fighting between weak effeminated freaks.

I don't think so It's more: The current use of Bitcoin does not even justify $1000, if you apply the Quantity Theory of Money, like this forum member did (his estimation for a fair price is about $200-250).

But I think all users that bought Bitcoins for more than - let's say - $500 are speculating that in the future there will be a much larger user base. But $100K would be already a order of magnitude where we would need a large portion of the world population using Bitcoin regularly. And I think it's not at all sure that that will occur.

We can do the math: If for the current user base (5-10 million) $250 is the "fair price" according to the QTM, then for a fair $2500 price we would need 50 to 100 million users (currently impossible without advanced scaling features or a massive block size increase to 10 MB or more), and for $100000, 2 to 4 billion.

If by "fair" price you mean a price based on just how much bitcoin is actually used as a currency to buy things, then yeah sure it probably would be around $250, because it isn't actually used a whole lot yet, most people treat it like a stock now, an asset that will appreciate with time, this is not how people treat currencies. So bitcoin is so much more than JUST a currency, which is why its price is an order of magnitude higher than what that "fair value" equation gives it. The fact is its use as money is only part of the bitcoin price equation so it doesn't matter that the actual price of bitcoin is so much higher than it, because it should be!

Bitcoin has aspects of a currency, digital-gold, immediate digital wealth transference, and a stock-type asset because it can be spent, used as a safeguard store of value when confidence in government created fiat is shaky, sending money quickly and cheaply to anyone in the world without passing through a centralized bank source, and an appreciating asset given that the userbase of bitcoin is so small still. So in the long term the current price is undervalued by an order of magnitude or two. In the short term, its impossible to say, sometimes its a little overvalued and crashes, sometimes its undervalued and a bull run gets initiated.

[bitbunnny]

Market and users, ratio between supply and demand determine the price. And different factors, like recent August 1st can also influence the price. So it's hard to say whether is undervalued or current price is reflection of current situation on the market. We would all like to see even biger price because we think bitcoin deserves it but the price isn't forming according to wishes.

[xDan]

It's not proven until Lightning Network is proven (in the real world). When major wallets support it and it's shown to function for day to day payments, I expect a spike. (And genuine growth, too.)

[EmmanCryp]

Maybe in 10 years people will say ' I wish I invested in bitcoin back in 2017'

Yes of course, just like I am saying today that how I wish I took btc investment serious just a year ago even when I was aware of it then. Anyway, I believe its never late to invest in anything good and valuable as Bitcoin

[EmmanCryp]

But as of now it's really obvious that more and more people are getting interested and trying to use bitcoin so I think the value will continue to rise in the future

Yes Btc value will definitely increase as awareness and adoption in many countries improves

[alyssa85]

It is hard to measure real worth of bitcoin without adding speculations to calculation.
It is actually overvalued, not under, yeah. But lots and lots of people think bitcoin as one of the most profitable tools in economy and easiest way of money transfer.

I agree with this. It's over valued. It hasn't managed to do more than 250,000 transactions a day, and with all the fees, no-one is using it in the real world.

[ASHLIUSZ]

It is hard to measure real worth of bitcoin without adding speculations to calculation.
It is actually overvalued, not under, yeah. But lots and lots of people think bitcoin as one of the most profitable tools in economy and easiest way of money transfer.

I agree with this. It's over valued. It hasn't managed to do more than 250,000 transactions a day, and with all the fees, no-one is using it in the real world.

I can't get you, what you mean by the real world usage. All that contributing to individual growth in a combined manner will lead to the economic growth of the country. So, what's taking place with bitcoin in majority was the real world transactions. In terms of physical offline usage we are lacking due to the online presence and no physical form.

[chip1994]

It is hard to measure real worth of bitcoin without adding speculations to calculation.
It is actually overvalued, not under, yeah. But lots and lots of people think bitcoin as one of the most profitable tools in economy and easiest way of money transfer.

I agree with this. It's over valued. It hasn't managed to do more than 250,000 transactions a day, and with all the fees, no-one is using it in the real world.

So need have more HardFork for improve the system of Bitcoin and helps Bitcoin can become to cryptocurrency for money transfer, actually in current have many altcoins can replace Bitcoin about money transfer, fast and can the capacity transactions every day are better than Bitcoin, example Ripple, Stellar, Digibyte, ...