Post
Topic
Board Speculation
Re: For Those Wondering Why The Current Rally
by
sunnankar
on 19/07/2012, 09:07:44 UTC
So what is your suggestion?

a cup of coffee?

Bitcoins are sterile assets just like gold but have less price support because they do not have industrial uses. As such any increase in the price of a bitcoin is simply a transfer of wealth from some other asset's value to holders of bitcoins. I like to view fiat currency as the common stock of issuing entities and value it accordingly. A similar approach may work for valuing bitcoins. Keep in mind that value and price are discrete.