Guide to Determining Fair Market Value for Cryptocurrency ...

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The foundation of an idea to figure out how to value bitcoin. "What is bitcoins fair market value".

Bitcoin is not an asset, it is money. It is a container to store the value we as humans create. Its main value proposition is its "store of value" properties. Afterall, no one would buy bitcoin if the total supply could be diluted at will.
You can not begin to understand how to value bitcoin until you understand it is not an asset, it is money.
What value do we as humans store in monetary mediums? We store the value we create. The value we create is defined as GDP (Gross Domestic Product). When I create value by providing my time I store that created value in money (my salary). When someone turns cheap steel and plastic into a valuable car, that cars value is stored in money, hence its "price".
You can understand bitcoins value (price) by understanding its value comes from people storing value inside it.
Global GDP (Gross World Product / GWP) is over $100 Trillion in terms of USD. GWP per capita is roughly $16,000.
We have roghly 25 million bitcoin users. $16,000 multiplied by 25 million users equals $400 Billion dollars. So this is a good average to determine bitcoins value.
Coincidently the total cryptocurrency market cap is $350 Billion. Not far off.
So in conclusion: bitcoins fair market value is the number of users multiplied by average GDP per capita.
Or in reverse: the number of bitcoin users is bitcoins market cap divided by average GDP per capita.
We know this to be true because if bitcoin gains a role as a single global currency its ability to function as a form of money would mean its value would HAVE to incorporate or absorb the value of global GWP.
This theory may be baloney or it may be the foundation of an idea that can help us as a community build a model we can reliably use to determine bitcoins fair market value.
There are many people out there trying to find a model to value bitcoin and I hope this helps.
Feel free to take this idea and build on it.
submitted by slvbtc to Bitcoin [link] [comments]

The foundation of an idea to figure out how to value bitcoin. "What is bitcoins fair market value". /r/Bitcoin

The foundation of an idea to figure out how to value bitcoin. submitted by SimilarAdvantage to BitcoinAll [link] [comments]

Hi Guys, Check this easy DIY guide to Measure Bitcoin's Fair Market Value.

Hi Guys, Check this easy DIY guide to Measure Bitcoin's Fair Market Value. submitted by LedgerFund to LedgerFund [link] [comments]

The Easy Way To Measure Bitcoin's Fair Market Value: A Do-It-Yourself Guide

The Easy Way To Measure Bitcoin's Fair Market Value: A Do-It-Yourself Guide submitted by CatalystCoin to Bitcoin [link] [comments]

Bitcoin Exchange: The Easy Way To Measure Bitcoin's Fair Market Value: A Do-It-Yourself Guide

Bitcoin Exchange: The Easy Way To Measure Bitcoin's Fair Market Value: A Do-It-Yourself Guide submitted by b8coin to Bitcoin [link] [comments]

The Easy Way To Measure Bitcoin's Fair Market Value: A Do-It-Yourself Guide

The Easy Way To Measure Bitcoin's Fair Market Value: A Do-It-Yourself Guide submitted by cryptocurrencylive to CryptoCurrencyLive [link] [comments]

Congressman Sherman that wants to ban cryptocurrency. Does he want to refund the people at fair market value for the 200,000 bitcoin the USA government sold them?

asking for a friend
submitted by MakeTotalDestr0i to Bitcoin [link] [comments]

Investopedia's valuation of Bitcoin

Thought this was quite interesting: http://www.investopedia.com/articles/investing/050914/easy-way-measure-bitcoins-fair-market-value-doityourself-guide.asp
submitted by mczarnek to BitcoinMarkets [link] [comments]

Is $10,000 Bitcoin's Current Fair Market Value?

Is $10,000 Bitcoin's Current Fair Market Value? submitted by Ichi_MokuM to CryptoCurrencyTrading [link] [comments]

Is $10,000 Bitcoin's Current Fair Market Value?

Is $10,000 Bitcoin's Current Fair Market Value? submitted by Ichi_MokuM to CryptoMarkets [link] [comments]

Insanely Easy Way to Come up with your own Fair Bitcoin Valuation

Amidst the competing visions for the future price of BTC between bitcoin and skeptics like Professor Bitcorn, I wanted to demystify how people should actually think about Bitcoin's actual fair market value.
You don't need Wall Street analysts to tell you what to think, you don't need an MBA, and you don't even need more than the a four function calculator, and two assumptions:
1) Future Monetary Base: What do you think the monetary base of bitcoin will be in 10 years? Compare bitcoin to gold or the US dollar reserves or whatever other appropriate metric you want. I was optimistic and assumed that it would be $1 trillion total, a mere fraction of US dollar reserves. Divide by the 20 million bitcoins that will be in circulation and you've got a $50,000 bitcoin in 10 years.
2) Probability of Success: What is the probability that bitcoin will NOT go to zero and is the "winner-take-all" protocol. I assumed that BTC still has an 80% chance of failure, so 20% probability of success. That would make bitcoin roughly five times riskier than any other stock investment I might make. Assuming a 12% return on capital for stock investments, that gives me a 60% "hurdle" rate.
Discount the $50,000 bitcoin to fair-market value using the 60% hurdle rate. Voila! You've got a $455 bitcoin.
Or
Price/btc = [10 Yr Monetary Base / 10 Yr Currency Units Outstanding] * [1 / (1 + 12% / Probability of Success) ^ 10]
Depending on your assumptions, your personal fair market value will swing wildly either to the upside or the downside. You can check out the full article I wrote here:
http://www.investopedia.com/articles/investing/050914/easy-way-measure-bitcoins-fair-market-value-doityourself-guide.asp
submitted by twobitidiot to Bitcoin [link] [comments]

[ANNOUNCEMENT] Whole crypto market and Bitcoin's fair value analysis now starting on 2010. Don't forget also checking the logarithmic scale. - CoinFairValue

[ANNOUNCEMENT] Whole crypto market and Bitcoin's fair value analysis now starting on 2010. Don't forget also checking the logarithmic scale. - CoinFairValue submitted by coinfairvalue to dashpay [link] [comments]

[ANNOUNCEMENT] Whole crypto market and Bitcoin's fair value analysis now starting on 2010. Don't forget also checking the logarithmic scale. - CoinFairValue

[ANNOUNCEMENT] Whole crypto market and Bitcoin's fair value analysis now starting on 2010. Don't forget also checking the logarithmic scale. - CoinFairValue submitted by coinfairvalue to komodoplatform [link] [comments]

[ANNOUNCEMENT] Whole crypto market and Bitcoin's fair value analysis now starting on 2010. Don't forget also checking the logarithmic scale. - CoinFairValue

[ANNOUNCEMENT] Whole crypto market and Bitcoin's fair value analysis now starting on 2010. Don't forget also checking the logarithmic scale. - CoinFairValue submitted by coinfairvalue to CoinFairValue [link] [comments]

Market is wrong; fair value of Bitcoin much higher: Tom Lee

Market is wrong; fair value of Bitcoin much higher: Tom Lee submitted by ABitcoinAllBot to BitcoinAll [link] [comments]

Market is wrong; fair value of Bitcoin much higher: Tom Lee

Market is wrong; fair value of Bitcoin much higher: Tom Lee submitted by cryptoanalyticabot to cryptoall [link] [comments]

Tom Lee: Bitcoin is Severely Undervalued and Fair Market Value is $14800 (current BTC/USD price is $3284.31255395)

Latest Bitcoin News:
Tom Lee: Bitcoin is Severely Undervalued and Fair Market Value is $14800
Other Related Bitcoin Topics:
Bitcoin Price | Blockchain | ICOs
The latest Bitcoin news has been sourced from the CoinSalad.com Bitcoin Price and News Events page. CoinSalad is a web service that provides real-time Bitcoin market info, charts, data and tools. Follow us on Twitter @CoinSalad.
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Tom Lee: Bitcoin is Severely Undervalued and Fair Market Value is $14,800 - Invest In Blockchain

Tom Lee: Bitcoin is Severely Undervalued and Fair Market Value is $14,800 - Invest In Blockchain submitted by ulros to fbitcoin [link] [comments]

12-14 05:52 - 'Market is wrong; fair value of Bitcoin much higher: Tom Lee' (cryptocoinearn.org) by /u/Reagan_x removed from /r/Bitcoin within 79-89min

Market is wrong; fair value of Bitcoin much higher: Tom Lee
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Author: Reagan_x
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Bitcoin Price Analysis: At $6,500, Bitcoin Prices are Under-Priced in a $8 Trillion Fair Value Market Cap

Bitcoin Price Analysis: At $6,500, Bitcoin Prices are Under-Priced in a $8 Trillion Fair Value Market Cap submitted by SpendDown to BitCoinMarket [link] [comments]

Bitcoin Price Analysis: At $6,500, Bitcoin Prices are Under-Priced in a $8 Trillion Fair Value Market Cap

Bitcoin Price Analysis: At $6,500, Bitcoin Prices are Under-Priced in a $8 Trillion Fair Value Market Cap submitted by selfish_sheller to bitcointrading [link] [comments]

[ANNOUNCEMENT] Whole crypto market and Bitcoin's fair value analysis now starting on 2010. Don't forget also checking the logarithmic scale. - CoinFairValue

[ANNOUNCEMENT] Whole crypto market and Bitcoin's fair value analysis now starting on 2010. Don't forget also checking the logarithmic scale. - CoinFairValue submitted by coinfairvalue to eos [link] [comments]

The BITCOIN Chart is at FAIR VALUE and the Ripple XRP Price Chart is Following (FOR NOW!) Bitcoin fair valuation at the next halving in 2024 Bitcoin always near its logarithmic regression How to sell bitcoin for profit 20 percent higher than ... The Bitcoin Halving (Price at the fair valuation)

We have previously commented on the IRS’ decision to categorize Bitcoin as property. In light of the ways people use Bitcoin, the regulations look increasingly unsuitable. Now, when taxpayers make purchases they must calculate their capital gains liability just as they do when they sell stocks. Bitcoin users must also estimate the 'fair market value' … Bitcoin is Trading at “Fair Market Value” as Tokens Breaches Past $9500. by Utkarsh Gupta. June 23, 2020. in Bitcoin News, News. 2 min read . 0. Share on Facebook Share on Twitter. ADVERTISEMENT. The last-24 hours were relatively positive for the largest digital asset. After spending more than a week under $9,500, Bitcoin has surged by 4.16 percent over the past 36 hours, and the asset is ... In addition, the fair value of bitcoin can be calculated using the principles of demand and supply of bitcoin available on the blockchain. If there is a high demand that outpaces the number of new ... Bitcoin Fair Market Value. Crypto Total Market Cap, $ (CALCULATED BY TRADINGVIEW) (CRYPTOCAP:TOTAL) Mt.BFX CRYPTOCAP:TOTAL Crypto Total Market Cap, $ (CALCULATED BY TRADINGVIEW) Beyond Technical Analysis Trend Analysis Chart Patterns. 219 views. 11. 1. beyondta trendanalysis chartpattern. Really, this was the bottom, $670 billion left the market. Related Ideas. There are many patterns in ... On CoinFairValue.com, however, bitcoin has a fair value of $4,521.70 – a significant difference. Ethereum, meanwhile, has a current spot price of $365 and a “fair value” of $532. BCH also experienced a similar rise, going from a $607.44 spot price to a $923.73 “fair value” price.

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The BITCOIN Chart is at FAIR VALUE and the Ripple XRP Price Chart is Following (FOR NOW!)

In this video I review the historic chart of Bitcoin to see that BTC is actually at it's fair value when we look at historical chart corrections. Currently, the XRP chart is following Bitcoin's ... How to sell your bitcoins for 20 % profit @ this moment in time it is working - I do not guaranteed anything do it @ your own risk there is money involved he... Here we take a look at the "fair value" of BTC heading into the halving. Historically the price is around this long-term logarithmic regression curve. Sorry for the poor audio quality, will get it ... The Bitcoin Halving (Price at the fair valuation) Benjamin Cowen. Loading... Unsubscribe from Benjamin Cowen? Cancel Unsubscribe. Working... Subscribe Subscribed Unsubscribe 25.8K. Loading ... The primary logarithmic regression equation tends to predict the value of Bitcoin fairly well at the halving. Here we dive into the projected fair-value of Bitcoin at the next halving. Join the ...

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