bitcoin is such an abstract cocnept, no one knows what the right price is for it.
That's not true. PQ=MV. That defines the fundamental value of bitcoin. When price exceeds the present value of the future valuation, sell. When it is inferior to the discounted future value, buy. The only thing difficult to estimate is PQ. But we can but certain floors under it. PQ must include at least 500 bn USD2013 from Western Union and Moneygram international remittances alone. It must also include at least half of the UN-estimated 2tn USD2012 global black market. It is likely to also include a substantial portion of the hadwalla network traffic and at least 30% of the GDP of the 4 minor central asian republics (where remittances are about half of GDP).
I think it is safe to say that unless there is some unforseen disaster a minimum value of BTC is 20 years is 15000 USD2013. Apply your preferred discounting curve to that, and you probably won't go too high.
M= money supply, V= the velocity of money, P=prices, Q=quantity
how does this account for time? can you show me an example of you using this with actual data to make a prediction?
