Fair Price of Bitcoin: $518?

[btcxyzzz]

Fair price for 1 satoshi in fiat scrip is this:



It is unethical to endorse violence-backed fiat by accepting it in trade for private keys.
In rational self-interest terms, it is also quite stupid to accept the value of national fiat for everyone except the people printing it and their close friends.

The miracle of fiat is that the governments of these nations have convinced millions of people that they are their close friends. The miracle is that people believe this.
The miracle of bitcoin is that it represents mathematically provable truth based money. This antidote is being injected into a society of deceit.

I'm gonna jerk off right now. Thanks bud. Really. )

[M28MmickT]

Bitcoin already seems to be fair at it's price.
Also, 1 BTC will always be = 1 BTC however much it is valued at, so instead of going for fiat, I would prefer a stable price at which we will be able to spend our BTC and don't regret if a price hike happens the next minute, which I am sure nobody wants...

This is a wise statement 1 btc will always be 1btc the price people try to put on it are just them trying to force a price on something that already has a price as said above 1btc is 1btc. Why do we want to put fake paper money on something world changing like btc, them habbits need to die hard fk paper fake central bank debts as a value just be happy with have this chance whatever the value.

Hat of to Satoshi!!

[bbulker]

Most of you don't seem to understand what "fair price" means. There's fair price and then there's market price.

This is valuing Bitcoin as if it were a company and the equipment used to secure and distribute transactions are the assets.

Your idea that we shouldn't even be using fiat is off-topic.

The valuation is accurate, Bitcoin is currently undervalued.

[leex1528]

Most of you don't seem to understand what "fair price" means. There's fair price and then there's market price.

This is valuing Bitcoin as if it were a company and the equipment used to secure and distribute transactions are the assets.

Your idea that we shouldn't even be using fiat is off-topic.

The valuation is accurate, Bitcoin is currently undervalued.

I agree with you with what your saying.  What I don't agree is what Fair price is for.  Market price in my mind is always the fair price because that is what you can buy/sell it for at a given time.  Fair Price is a speculation of what someone thinks it is worth, and to me that is worthless

[bbulker]

Most of you don't seem to understand what "fair price" means. There's fair price and then there's market price.

This is valuing Bitcoin as if it were a company and the equipment used to secure and distribute transactions are the assets.

Your idea that we shouldn't even be using fiat is off-topic.

The valuation is accurate, Bitcoin is currently undervalued.

I agree with you with what your saying.  What I don't agree is what Fair price is for.  Market price in my mind is always the fair price because that is what you can buy/sell it for at a given time.  Fair Price is a speculation of what someone thinks it is worth, and to me that is worthless

It simply isn't. Fair price is certainty, market price is speculation.

[leex1528]

Most of you don't seem to understand what "fair price" means. There's fair price and then there's market price.

This is valuing Bitcoin as if it were a company and the equipment used to secure and distribute transactions are the assets.

Your idea that we shouldn't even be using fiat is off-topic.

The valuation is accurate, Bitcoin is currently undervalued.

I agree with you with what your saying.  What I don't agree is what Fair price is for.  Market price in my mind is always the fair price because that is what you can buy/sell it for at a given time.  Fair Price is a speculation of what someone thinks it is worth, and to me that is worthless

It simply isn't. Fair price is certainty, market price is speculation.

Going to disagree with you there completely.  Fair price is:

In accounting and economics, fair value is a rational and unbiased estimate of the potential market price of a good, service, or asset. It takes into account such objective factors as: acquisition/production/distribution costs, replacement costs, or costs of close substitutes.

This means that fair price POTENTIAL to be worth something, or it COULD, in the future be worth that, Again, it is a speculation of what the market price is and what it could be.

[bbulker]

Most of you don't seem to understand what "fair price" means. There's fair price and then there's market price.

This is valuing Bitcoin as if it were a company and the equipment used to secure and distribute transactions are the assets.

Your idea that we shouldn't even be using fiat is off-topic.

The valuation is accurate, Bitcoin is currently undervalued.

I agree with you with what your saying.  What I don't agree is what Fair price is for.  Market price in my mind is always the fair price because that is what you can buy/sell it for at a given time.  Fair Price is a speculation of what someone thinks it is worth, and to me that is worthless

It simply isn't. Fair price is certainty, market price is speculation.

Going to disagree with you there completely.  Fair price is:

In accounting and economics, fair value is a rational and unbiased estimate of the potential market price of a good, service, or asset. It takes into account such objective factors as: acquisition/production/distribution costs, replacement costs, or costs of close substitutes.

This means that fair price POTENTIAL to be worth something, or it COULD, in the future be worth that, Again, it is a speculation of what the market price is and what it could be.

That's not what it means. It says potential market price because market price is unpredictable and based on human behavior. Fair price is based on factual evidence and rational logic.

Edit:
Let me give you an example. You and a buddy are neighbors in some remote place. You grow pears in 1 acre, he grows apples in 1 acre. At the end of the grow you and him like to trade some so you both have apples and pears. This season brought you 200 pears and him 400 apples. Fair price has it that you would give him 1 pear for each 2 apples. But, your buddy gives you some long story about how his wife hates pears and convinces you to give him 1 pear for each 1 apple, this is market price.

[Hazir]

It honestly depends on how close we attribute Bitcoin to gold.

Gold can only be predicted with respect to total store, and potentially chemically recreated one for mass production (bear with me on the Sci-Fi a little, I know it may sound stupid, but there is a point - even if it may be incorrect).

Knowing that gold's future supply is variable (as we we use the rate at which we mine it, and the amount we have mined at this rate to predict further stores, AS WELL as the sci-fi point mentioned above), we have to stipulate that Bitcoin has a different context surrounding its valuation.

We know how many maximum bitcoin there will be (in real terms obviously, not nominal terms), we also know that LESS THAN all bitcoin will be recovered (due to losses of wallets and etc.). This FIXED and SMALLER supply has a much different future discount property than the variable nature of what we might perceive our perpetual gold stores to be in the future (again, if we can manufacture that stuff, the model of comparison breaks down).

At this point, to keep it simple and not foray into the territory of delusion (aka my sci-fi comment), we should just take it that the fair value is unknown and that the gold comparison is too linear.

I will add in my opinion that I believe bitcoin is undervalued for the fact that there has been more activity in the sphere despite the lower price, and that if you aggregate the salaries of the talent pursuing the industry as well as the opportunity costs of the venture capitalists supporting them, then the price of bitcoin is not as high as it should be. Furthermore, there is a higher level of acceptance for bitcoin from big 1% companies (microsoft for example) than there was at the same time last year when the price was higher. Add to this that the current drop in price since December 2013 though large, in relation to prior drops (I remember when it went to $8 like two-three years ago) is actually smaller in magnitude and therefore implies a lesser degree of volatility.

That's my two cents, please give me some activity points LOL.

Bitcoin can't be related to gold. Ever. Bitcoin is a FIAT without its own value. Gold is something natural. There is no correlation within these elements at all.

[Possum577]

So what's Ben Graham's formula?

The fair price is where the buyer and the seller can agree...it'll never be a single price, it will always be changing.

[bbulker]

The fair price is where the buyer and the seller can agree...it'll never be a single price, it will always be changing.

That's called market price.

[Hazir]

The fair price is where the buyer and the seller can agree...it'll never be a single price, it will always be changing.

That's called market price.

No my friend. There is no good price when you are selling bitcoin. For some it may be worth more than $500 for somebody else only $100. Bitcoin price is based on individual mindset of people. There is nothing like universal price of bitcoin.

[bbulker]

The fair price is where the buyer and the seller can agree...it'll never be a single price, it will always be changing.

That's called market price.

No my friend. There is no good price when you are selling bitcoin. For some it may be worth more than $500 for somebody else only $100. Bitcoin price is based on individual mindset of people. There is nothing like universal price of bitcoin.

Yes there is. http://en.wikipedia.org/wiki/Fair_value

[oblivi]

Fair price for 1 satoshi in fiat scrip is this:



It is unethical to endorse violence-backed fiat by accepting it in trade for private keys.
In rational self-interest terms, it is also quite stupid to accept the value of national fiat for everyone except the people printing it and their close friends.

The miracle of fiat is that the governments of these nations have convinced millions of people that they are their close friends. The miracle is that people believe this.
The miracle of bitcoin is that it represents mathematically provable truth based money. This antidote is being injected into a society of deceit.

Marvelous post. This is why im never, ever selling. I find absolutely no reasons to ever sell Bitcoin for objectively inferior currency. WHATS the point in any case? I would much rather hold future gold. Until I have a magic ball that would tell me "look, tomorrow there will be a big correction, sell now then REBUY more", my Bitcoin is only leaving my wallet to purchase goods and services.

[blumangroup]

The price is the average of what everyone is willing to pay for it, there are far to many people to get the mean so just blurt out any number you think and it may well be right

Or just take a look at the market price and that will give you the 'fair' price if your lucky 

[gkv9]

One more thing I would like to mention is,
I have seen many people barking about "The price should be this, the price should be that." One thing I would like to ask such people is: Have you ever done anything for Bitcoins in order to get it to that price? Just talking BS about price won't get it to there where you want it to be. So, either stop being over-smart or do something to get it to the price you want it to be at.

[Gyfts]

To put things straight, you are comparing a formula to Bitcoin's price? I don't think it's fair to determine the price of one Bitcoin. We all can argue back and forth about what the price of a Bitcoin "should be", but you can not pinpoint it based on miners. Personally, I do agree the price of a Bitcoin is below what it "should be", (or maybe what I want it to be), but, a formula is not something that can value Bitcoin. Reading the wikipedia article, the formula derives from predicting stock values, so I could see why someone would cross over to BTC.

[Mieehayii]

price is a natural attributes, fair is only in human society,

so i could say that coindesk article is advertising 

[ajw7989]

Bitcoin fair price will always be whatever buyers are willing to pay. 518 is a little high from the looks of it. There needs to be big news to drive the price up and maintain it.

[Amph]

i don't think there is such thing as a "fair price", everything is subjective, bitcoin price should be as a high as possible, due to its deflationary nature

[dothebeats]

Most of you don't seem to understand what "fair price" means. There's fair price and then there's market price.

This is valuing Bitcoin as if it were a company and the equipment used to secure and distribute transactions are the assets.

Your idea that we shouldn't even be using fiat is off-topic.

The valuation is accurate, Bitcoin is currently undervalued.

I agree with you with what your saying.  What I don't agree is what Fair price is for.  Market price in my mind is always the fair price because that is what you can buy/sell it for at a given time.  Fair Price is a speculation of what someone thinks it is worth, and to me that is worthless

It simply isn't. Fair price is certainty, market price is speculation.

Going to disagree with you there completely.  Fair price is:

In accounting and economics, fair value is a rational and unbiased estimate of the potential market price of a good, service, or asset. It takes into account such objective factors as: acquisition/production/distribution costs, replacement costs, or costs of close substitutes.

This means that fair price POTENTIAL to be worth something, or it COULD, in the future be worth that, Again, it is a speculation of what the market price is and what it could be.

That's not what it means. It says potential market price because market price is unpredictable and based on human behavior. Fair price is based on factual evidence and rational logic.

Edit:
Let me give you an example. You and a buddy are neighbors in some remote place. You grow pears in 1 acre, he grows apples in 1 acre. At the end of the grow you and him like to trade some so you both have apples and pears. This season brought you 200 pears and him 400 apples. Fair price has it that you would give him 1 pear for each 2 apples. But, your buddy gives you some long story about how his wife hates pears and convinces you to give him 1 pear for each 1 apple, this is market price.

Market price is indeed based on what people are thinking. It depends on the way how people view how the price is going to be and is purely based on speculations without relying on solid factual evidence.