Quote from: bbulker on March 05, 2015, 05:08:56 PM

Quote from: leex1528 on March 05, 2015, 04:49:03 PM

Quote from: bbulker on March 05, 2015, 04:45:51 PM

Quote from: leex1528 on March 05, 2015, 04:38:00 PM

Quote from: bbulker on March 05, 2015, 04:15:17 PM

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.