Bitcoin and Crypto Intrinsic Prices Calculated Utilizing Austrian Economics.

[mycoinrisk]

In Finance, the main objective is to determine the fair value or intrinsic value of an asset or investment to then make investment decisions based on this data.

With Cryptocurrencies, we often hear that they have no true value or intrinsic value. That their value is purely speculative which to a large degree is very true.

According to CoinFairValue and a model knows as the Currency Fair Value Model though many major Cryptocurrencies are not currently trading at their intrinsic value. Their model utilizes a number of factors such as Total Discounted Supply Theory Of Money, Velocity of Money, and other variables that they have derived from Austrian Economics to calculate the intrinsic value of cryptocurrencies.

CoinFairValue's intrisic values:

Bitcoin Fair Value - $7329.35

Bitcoin Current Price - $3688.83


Ethereum Fair Value - $244.03

Ethereum Current Price - $127.69


Stellar Fair Value - $.314451

Stellar Current Price - $.1283


Tron Fair Value - $.125685

Tron Current Price - $.028544


EOS Fair Value - $7.91

EOS Current Price - $2.91


Bitcoin Cash Fair Value - $382.19

Bitcoin Cash Current Price - $131.43


Litecoin Fair Value - $59.8

Litecoin Current Price - $33.24

Read the full list here

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[deisik]

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Could you please explain the methodology used?

As you yourself understand it? For example, how is Bitcoin's fair value calculated? I think we don't need a lot of formulas here, just a brief description which would be sufficient to see if this methodology has any substance and is actually applicable to the task in question

Personally, I'm interested in how they estimated money velocity, i.e. what data was taken as basis. I'm certain that they used trading volumes but I'm not sure if it is a legitimate metric for measuring intrinsic value just because you can actually calculate something which can be remotely called a money turnover rate

[dothebeats]

That is, again, based on a certain model and these projections are calculated based on an ideal setup wherein everything is measured up to the last decimal. We cannot really do that in bitcoin, and the current economy is somewhat hazy. Everyone can give their opinion of what bitcoin's fair value is, though the market will always dictate and decide what the value will be. Also, these numbers seem to have been pulled somewhere in thin air. Austrian economics, IMO, isn't really applicable anymore to bitcoin knowing how much government intervention and capitalist involvement is already in place.

[1Referee]

Also, these numbers seem to have been pulled somewhere in thin air.

Must be. Crypto is one of the hardest asset classes to value, so it all comes down to personal bias in the end.

If you have a strong dislike towards certain coins, you will automatically value them much lower. In my case that means BCash's 'fair' value is between shouldn't exist and a buck. Obviously, that also means that coins you like will be granted a much higher 'fair' valuation.

In the end, the latest market rates are what people want to pay for them, so that's the only form of 'fair' value crypto can have. If people don't want to pay $3700 for Bitcoin anymore, it will drop to levels they are comfortable buying in again, and that applies to every crypto currency. Money speaks for itself, thoughts about crypto being worth more doesn't.