*sigh*

No, a dollar is worth exactly the amount of work you put in to earn it, it is also worth the amount of goods you can trade it for.  The underlying value of the dollar, and any currency, is the amount of work you will spend to earn it.  Currently, the work for a BTC is the electricity input.  You don't do anything to mine BTC, your GPU does.

You totally missed the point of the post.  I am trying to arrive at an objective fundamental value for a BTC.  Even Satoshi Nakamoto, the CREATOR of bitcoin says that ultimately the value to converge toward the marginal electricity cost.

A price at 32 times the cost is pure speculation pure and simple.  I'm not trying to argue any opinion here, I'm seeking truth.  Everyone has an agenda when it comes to BTC.  If you read carefully, you see I have no agenda, other than to arrive at a fundamental price for the BTC.  I own some BTC.  I believe the price will go up, but I do not think it is accurately priced right now.

I am not dooming BTC.  I want it to survive.  I am warning against rampant speculation, which brought down the financial market, the housing market and every other market that crashed.

Let's be objective please and analyze what is really going on, instead of getting defensive.


Obviously did not read or understand what I said.  I said I am looking at the long run.  The price of a BTC is worth the amount of input work, which is the electricity.  The creator of the system himself said that, I'm not making this up.  If you look at my projections, and what I say, I don't think the BTC is overvalued, esp given the IRR.  What I'm saying is that the current price to cost ratio is out of whack.  Of course this will all change in 2 months, and in the long term, the situation will correct itself because of competition.


Uh what? That’s not even relevant.

Anyway, thank you smooth, finally a relevant answer.  What I’m attempting to do is arrive at a mathematical formula for BTC pricing.