Quote from: Vlad2Vlad on July 22, 2013, 02:58:13 PM

Quote from: twobits on July 22, 2013, 02:54:06 PM

Quote from: Vlad2Vlad on July 22, 2013, 02:17:42 PM

Quick, give me the net present value of bitcoin assuming zero cashflows in the future and a discount rate of 25%.

I think would get a zero for the answer to that. However, that assume that the way to value a btc is similar to a stock.

What is the NPV of a dollar? You dont calculate that based on cashflow, but rather interest and inflation rates.

No the dollar is calculated more on supply, velocity and a few other things. Inflation snd interest don't affect value as much as depreciation and economic greothxc

But yeah, bitcoin is not a real asset so it was a trick wuesion but wallstreet MBA's don't get it they keep trying to value it. That's why they don't take it seriously.

And that's why ixCoin can to to $100 and devcoin to $1 cause It has nothing to do with real fundamental analysis or cashflows. That's why I said this will b bigger snd faster than the dot com bubble once it catches on.

I consider inflation to reflect supply, and velocity and economic growth. The interest rate I expect to reflect inflation + expected growth + return of the specific investment