How To Find The True Value Of Bitcoin

[SuperTA]

How to search and find the true value of Bitcoin!
Credit goes to @VinnyLingham, he was the first to spot this in 2014.
https://vinnylingham.com/finding-equilibrium-searching-for-the-true-value-of-a-bitcoin-ba5f3fcce103
Source https://twitter.com/woonomic

Live Chart - Bitcoin Difficulty Ribbon
http://charts.woobull.com/bitcoin-difficulty-ribbon/

[sufferer123]

The price of any product is purely a matter of supply and demand. A product 'This should be the real price' can not be commented, should not. If someone wants to buy the demand increases the price increases. Confidence decreases the need decreases the price falls. It's that simple.

[BlackFor3st]

There are many obstacles that bitcoin will face first before having it's true value like government acceptance. If 50% of the governments will banned it then it's value will only remain to 50% out of it's 100% value as the demand is only 50%.

If there are many buyers then it's price will increase and the same with it's opposite, so in my case only the government has the power to dictate the price of bitcoin.

[omone1]

I understand some miners will sell to pay off cost of running and logistics. But every miners are not in the same region and holding conference either to sell or hold, and we can't even determine the miners who are making more bitcoin as per individuals. What if miners want to sell and the same time whales are aggressively buying, those miners will beat a retreat or buy at FOMO. I hope this concept helps though. I will keep in touch.

[Darker45]

...only the government has the power to dictate the price of bitcoin.

No, I strongly disagree! The price of Bitcoin is dependent upon the demand of the people. The value has actually started from zero and gradually turned to a few cents and a few dollars later on. The growth has nothing to do with the government whatsoever. Everything has something to do with people putting trust on it basically because of its technology, that it cannot be controlled by any single individual or group, that it cannot even be tampered or killed, that transactions are made public therefore transparent, and that personal identities are not anymore needed in doing transactions. It is therefore the agreement among people that Bitcoin has value that put value to it.

[turkandjaydee]

...only the government has the power to dictate the price of bitcoin.

No, I strongly disagree! The price of Bitcoin is dependent upon the demand of the people.

Basically BlackFor3st point make sense.
No matter what, government action will always have impact to bitcoin/cryptocurrencies prices directly or indirectly. If they ban a coin and make it illegal, that means people who still use it will be under pressure of jail or any other sanctions whether people still want to use it or not. Eventually people will not be able to use/exchange/transact that coin publicly or freely. So the transaction volume will be less that what it should be.

Or another example just look at the past , what was the reason of bitcoin/cryptomarket pump and dump?

[serjent05]

There are many obstacles that bitcoin will face first before having it's true value like government acceptance. If 50% of the governments will banned it then it's value will only remain to 50% out of it's 100% value as the demand is only 50%.

If there are many buyers then it's price will increase and the same with it's opposite, so in my case only the government has the power to dictate the price of bitcoin.

I believe the true value of Bitcoin is subjective as the supply and demand dictates.  One person may think that the true value of Bitcoin is over a million dollar and another person will think it is worthless, regardless of government acceptance.  It is the willingness of a person to pay according to his assessment how much he think the worth of Bitcoin is, same goes to those who sell.  Though this is influenced by the government acceptance but still it is how much an individual want to buy or sell Bitcoin and the availability in it in the market and how many are you competing on that price.

[samcrypto]

There are so many insights about this one, and for me the real value of bitcoin is the one on the exchanges. We have to stop over thinking, we just need to focus on what's on our screen and always set your goal. If the real value of bitcoin to me is around $20k then why the price is down to $10k? I hope you guys get what I mean. We have to admit it, I know bitcoin is more valuable than other currency but the demand and supply already state their price and its around $10k today.

[diahsw]

How to search and find the true value of Bitcoin!
Credit goes to @VinnyLingham, he was the first to spot this in 2014.
https://vinnylingham.com/finding-equilibrium-searching-for-the-true-value-of-a-bitcoin-ba5f3fcce103
Source https://twitter.com/woonomic

Live Chart - Bitcoin Difficulty Ribbon
http://charts.woobull.com/bitcoin-difficulty-ribbon/


Quite simply, Bitcoin has value because some people continue to believe the underlying Bitcoin technology has value. In the future, Bitcoin technology can be used for a variety of financial service applications ranging from payments, contracts, to distributed allocations. Because Bitcoin is a rare currency unit needed to empower this application, they are valuable. Unlike fiat currencies, which supply money that may be pumped by central banks, there is a limited Bitcoin that will be released into circulation, making the currency a store of superior value compared to other international reserves. Although Bitcoin is not a government-supported payment instrument, currency values ​​are supported by individuals and traders who voluntarily accept Bitcoin for their goods and services.
If we can prove that Bitcoin has a positive expected value, then we can start making our own estimates of its current fair value.

[babysweetTiger0401]

There are many obstacles that bitcoin will face first before having it's true value like government acceptance. If 50% of the governments will banned it then it's value will only remain to 50% out of it's 100% value as the demand is only 50%.

If there are many buyers then it's price will increase and the same with it's opposite, so in my case only the government has the power to dictate the price of bitcoin.

That's right most of the government in each country they opposed it, I don'k know why they hate despite of it can help to their economy.
But others country they're not banning it instead they regulate Bitcoin to their country just like Japan, and others. And I agreed that the government has the influence to make the price of Bitcoin be increase or decrease.

[KuraJamban]

There are many obstacles that bitcoin will face first before having it's true value like government acceptance. If 50% of the governments will banned it then it's value will only remain to 50% out of it's 100% value as the demand is only 50%.

If there are many buyers then it's price will increase and the same with it's opposite, so in my case only the government has the power to dictate the price of bitcoin.

That's right most of the government in each country they opposed it, I don'k know why they hate despite of it can help to their economy.
But others country they're not banning it instead they regulate Bitcoin to their country just like Japan, and others. And I agreed that the government has the influence to make the price of Bitcoin be increase or decrease.

But the main thing here is, the Government can sometimes influence the value of Bitcoin.
But the real value of Bitcoin is their innovation of blockchain technology. And I think that's the real reason why people still investing in it.
Besides that, Bitcoin also already been used as the main pair on almost every token or coin.

[antisocial77]

we will never find that value because this market is very speculative and there are few people or organizations who own large amount of bitcoin so they decide the way of bitcoin.miners do the same ofcourse and i think they move together.

[Naida_BR]

I don't think that there any clear indication of defining the True value of Bitcoin.
All those metrics that investors have created and try to predict their true value cannot be valid. There are so many data in the industry that they cannot be taken into consideration because of their volume. Thus, always something would be missing from those calculations.

[Herbert2020]

so basically this dude found a couple of cases when price stabilizes and that leads to less fluctuations in hashrate and he is concluding that the relationship is in the other direction! when will newcomers learn that the hashrate changes are the effects of the price change not the other way around.

[SuperTA]

so basically this dude found a couple of cases when price stabilizes and that leads to less fluctuations in hashrate and he is concluding that the relationship is in the other direction! when will newcomers learn that the hashrate changes are the effects of the price change not the other way around.

Yes, the price dump comes first. The miners so called capitulation usually comes after that.
This idea originates from 2014.

The price of any product is purely a matter of supply and demand. A product 'This should be the real price' can not be commented, should not. If someone wants to buy the demand increases the price increases. Confidence decreases the need decreases the price falls. It's that simple.

True, but sometimes you can predict a higher or a lower demand. In the beginning of a bull market there will be a higher demand. There are rules  how to recognize the start of a bull market. Bitcoin new bull trend market started in may this year. That's why there was a higher demand and more buying in april, may, june at the higher price rather than in december at 3200 USD. When bitcoin was worth 3200 USD, this was the best buy opportunity, yet almost nobody wanted to buy. There was a low demand for bitcoin near the bottom. After bitcoin reached 7k and 8k there was a higher demand, even if the buyer had to pay twice as much for 1 Bitcoin.

[rokon1234]

Prediction is now important for crypto trader and i think it will helped everyone to khow about some information about bitcoin price markets.

[marjil]

The true value is whatever it is at any given point in time, because that is the price point where demand meets supply and supply meets demand. The market tells you the value in real time - currently it is $7267 - so that is the value. There is no other "true value".

[Artemis3]

The price of any product is purely a matter of supply and demand. A product 'This should be the real price' can not be commented, should not. If someone wants to buy the demand increases the price increases. Confidence decreases the need decreases the price falls. It's that simple.

Don't forget usefulness to the holders. Is it storing value? Is it secure, easy to exchange?. Value of things are not cost of production alone, this is an element many people fail to understand. The value of things are subjective to the person. It is the reason there is demand in the first place, otherwise nobody would want it as it would be completely useless. Bit it happens to be both useful and limited in supply.

This is a highly recommended read: The Theory of Money and Credit by Ludvig von Mises. (free ebook)

Mises shows how money had its origin in the market, and how its value is based on its usefulness as a commodity in exchange. In a step-by-step manner, Mises presents the case for sound money with no inflation, and presents the beginnings of a full-scale business cycle theory.

And this is why Austrian economics are a must to a world with Bitcoin.

[Youghoor]

How to search and find the true value of Bitcoin!
Credit goes to @VinnyLingham, he was the first to spot this in 2014.
https://vinnylingham.com/finding-equilibrium-searching-for-the-true-value-of-a-bitcoin-ba5f3fcce103
Source https://twitter.com/woonomic

Live Chart - Bitcoin Difficulty Ribbon
http://charts.woobull.com/bitcoin-difficulty-ribbon/

These information do not really say anything about the true value of bitcoin. The true value of any product is the kinda services the product provides in the financial ecosystem. The true value of bitcoin is the kinda services its providing the financial ecosystem and the financial freedom it gives  people. The true value of bitcoin is not its value in dollars on the crypto market but its relevance in providing financial freedom...

[kotik085]

The true value of bitcoin is an upward correction in the price of bitcoin. It can be seen that on the chart, the scale rises and the price of bitcoin rises.