What is a bitcoin REALLY worth?

[ttking]

There is an opinion that by the time of approaching the emission maximum, the demand for the untrained bitcoin will be huge. Due to insufficient supply on the market by this time, the price of crypto currency will be huge. Therefore, the defenders consider the current moment to be ideal when it is better to buy bitcoins.

[Tosg399]

What’s Bitcoin really worth? This question might really drive you mad if you think hard enough about it. $0? $10? Maybe $1,000,000 for one coin? The range of the numbers can make your head spin but it is the explanation behind the number that matters. For the most part, investors don’t have a good reason why Bitcoin is worth this or that, apart from claims that “it will take over the world” and so on. This hasn’t stopped people from trying, though. Is it even important for short-term traders? Can it boost profits on our hypothetical positions?

In an article on the Bloomberg Businessweek website, we have stumbled upon a number analyses of the value of the cryptocurrency. We read:

It took two economists one three-course meal and two bottles of wine to calculate the fair value of one Bitcoin: $200.

It took an extra day for them to realize they were one decimal place out: $20, they decided, was the right price for a virtual currency that was worth $1,200 a year ago, flirted with $20,000 in December, and is still around $8,000. Setting aside the fortunes lost on it this year, Bitcoin, by their calculation, is still overvalued, to the tune of about 40,000 percent. The pair named this the Côtes du Rhône theory, after the wine they were drinking.

If this sounds pretty definite, it actually isn’t. What the two economists used to value Bitcoin is called the quantity theory of money. Without getting too technical, it is a relatively simple equation which lets you recover the value of the currency. The caveat here is that this method is sensitive to the underlying assumptions and inputs. One of the crucial inputs is the value of what the currency buys and things go downhill from here pretty quick.

Does Bitcoin support $1.2 billion in payments? Or maybe it’s transmitting money from illegal activities and we should include this in the figure? Or it’s not that important what kind of resources Bitcoin transmits today but we should focus on what it will transmit in a year (two? three? ten?) and calculate what it’s value is going to be going forward? So, even though we do have an established model, the uncertainty about the critical input is a hindering factor.

Just how hindering is it? We could sugarcoat it, but we won’t. It’s simply too important a matter for Bitcoin investors and the hard facts are that the final value you get varies wildly depending on what input you use. For a static approach, where we focus on the current value of goods Bitcoin buys, a very conservative estimate would be the $20 for one Bitcoin we mentioned before. Different figures for what is bought for Bitcoin give answers like $600. This is still well below the current price. So, if you were to believe in the application of the quantity theory of money to Bitcoin, this would be a bearish implication.

Changing the approach from static to dynamic and assuming Bitcoin might actually become a safe haven the way gold is could give a target of $260,000 to $800,000. OK, by now you probably get the idea. Various principled approaches give results ranging from $20 to $800,000. If you consider different approaches, perhaps even more. What does this mean for you and your decisions?

The first clue is that if we don’t see any evidence of Bitcoin gaining more users and becoming a part of the fabric of the payments system or reacting strongly as a safe haven, then the currency might be trading too high.

The second one is that it is precisely the number of people willing to buy or sell Bitcoin that you have to observe. There are a lot of people who could potentially be interested in Bitcoin but don’t have access to it. It might be the case that the rally to the all-time high in Bitcoin was connected to the launch of first regulated Bitcoin derivatives. At the same time, one of the most striking characteristics of the Bitcoin market is that a vast majority of buyers has no concept of Bitcoin value altogether but ha simply bought the currency in the anticipation of a move up. With Bitcoin not going above the all-time high for some time now, these buyers might be shaken out of the market, fueling further declines. This is precisely the point where short-term considerations become important and so we’ll move on to the technical part of today’s analysis. In other words: for short-term positions, technical factors might be a lot more important that what Bitcoin is theoretically worth.

[steve_rogers]

As far as I know the price of mining of one bitcoin is 3100$ without cost of miners, so there is no way that price will drop below this level. It is only one point also we should consider the game makers who also will not allow to drop the price.

[Mia Wallace]

        Bitcoin, the digital decentralized one was introduced by an unknown person or company named by Sathoshi Nakamoto in the year 2009 . Bitcoin introduction sowed a way in the life of several people who were struggling for job and this changed the life style of people and it became a blessing for the those unemployed and those who were trying to make both ends of life to meet together.  Bitcoin doesn't exist as fiat currency but it is an online transaction.

[xfaqs01]

The price or the worth of bitcoin depends really on the supply and demand, supply is unquestionably scarce so it really dictates the price because of limited supply however if or despite its scarcity if the demand is very low, the price will not go that far, thats economic principle, and for now i really dont see a phenominal usecase for bitcoin such as micropayments usage contracts, etc... but im positive itll come out soon

[Haiishdh]

Bitcoin is most popular crypto currency in digital world. So the number of people who want to invest in bitcoin increases, so as the bitcoin price.

[Chaelbrin]

I see bitcoin as a store of significant worth. The banks can without much of a stretch make their own particular coins, which will occur sooner rather than later. Be that as it may, I accept there is put for bitcoin nearby the new monetary standards of national banks. A decentralized store of significant worth in which you can securely set aside your investment funds. We have found in nations that don't have a steady cash they frequently store their riches in bitcoin. Bitcoin will supplant gold later on.

[Eranoba02]

Bitcoin is just like a gold that is valuable

[BrindHexta]

what you want is what it worth. people would like to use btc as currency, so its real value depends on willingness or belief of most people.

[azisdoank]

i think Worth of bitcoin is helps me and every one to earn much money and bitcoin is a symbol of a easy way to earn money and it will change the economy with low rates of economy.The bitcoin is a great opportunity for people like me and other people who know it to earn a huge amount of money.Bitcoin worth is granted by God for us to gather and to work on this matter to get out of the hardships of life and I believe that Bitcoin is worth the cost of acquisition but aspects like utility value, the potential for growth increase the price of it along with the demand and supply scenario from the market

[setsuna_gray26]

The value of bitcoin is determined by how desperate are the people,who want to buy bitcoins.
Other people are talking about supply and demand.They are right,but i have other point of view.
If there was only one buyer of the entire btc market and that buyer is willing to pay 1 million US dollars for one bitcoin,the market price of one btc would be 1M USD.Sound`s crazy ,but it`s true.
It`s like buying a rare painting.Some buyers are willing to pay 100$ ,others are ready to pay 10 million USD.

Yeah, you have a good point. Supply and demand is one of the factors that may affects the price of the bitcoin and other cryotocurrency. Just like what you have been said if the demand is vey high then probably its price will start to grow and vice versa.

[mrben77]

one of the analysts of the Morgan Stanley bank, James Fawcett and his team conducted a study, which resulted in the zero cost of bitcoin. The reason for this is the lack of an interest rate. it turned out, everything is very simple.

[Odlanyer]

We all know that the bitcoin is most popular cryptocurrency in digital world so for me bitcoin was worth because 10000 USD it means bitcoin is high value that's why many people want to buy and pay bitcoin.

[Shtamm_oval]

The price of bitcoin as well as the price of any other product mainly depends on supply and demand, it is very unstable and it is very difficult to guess it.

[makatia]

It is very high value in this market, the market will determine its price. The advantage of Bitcoin is that there is a limit on the amount of coins that will be produced, so the supply and demand principles will take effect.

[Manue_77Smith]

As we all know bitcoin is one the safest and first cryptocurrency and the 1bit is nearly around $ 93000 and the most important thing Bitcoin doesnt have a price stability it depends on the movement of the market.

[TTITA]

The price of bitcoin is and will be a problem for all of us. On the one hand, the price of bitcoin is not constant and depends on the supply and demand for it on the market. It's right. But on the other hand, people create speculative demand for bitcoin, which is not confirmed by anything and is clearly incommensurable with its real price. Can not one digital currency with the worst characteristics cost thousands of times more expensive than much better other digital coins. This is absurd. However, this reality and this reality in the long-range can create a crypto currency a serious problem.Bitcoin could be worth millions, but as of this time, I don't find it useful due to the expensive fees. I'm just parking my coins in my wallet for now and trying to avoid making payments with it.

[Robinovich]

I often read crypto related news in the morning. You know what Nobel economics prize winner Robert Shiller said? He says that crypto in general is a bubble (personally I DON'T think so) and bitcoin too. But besides being a bubble, according to Shiller, it is a great social movement that has no geographical or generational borders. Also he says that it's not going to worth zero.
To my mind, in the world that is a global village now, 'social movement' worth much.

[feehannah]

For me,bitcoin is really worth because of,it can give a great opportunities to everyone to have an additional income,and will have a chance to change their daily living status. Likewise,those houswives who want to help their husbands to earn additional income,they can do this even they're staying at their home,while taking a good care with their childrens.

[Verde_Mantis]

For what bitcoin could offer us in the long term I think that the price is more or less fair at the moment, the values of the last December were way too high... In the future it should keep increasing its value depending on the adoption level.