Re: Fair Value of Bitcoin

Quote from: teosanru on March 18, 2023, 07:13:34 PM

Quote from: SylasDarkmoon on March 16, 2023, 12:05:19 PM

Hey folks,

I've recently resurrected ALFAquotes website with the new name: bitcoinfair.org which was calculating Bitcoin's Fair Value (Price) and was mentioned in
CoinDesk: https://www.coindesk.com/markets/2015/03/02/is-518-the-fair-price-of-bitcoin/
NASDAQ: https://www.nasdaq.com/articles/bitcoin-price-prediction-why-its-only-now-finding-true-value-2015-03-11

The formula may be interesting for long-term investors and correlation is pretty interesting.
Inspiration to create such formula and calculate for the whole period of Bitcoin's existence came after getting familiar with Ben Graham's works.
Fair Value is fully based only on mining costs, price has no influence on it, but correlation between two is pretty interesting.

I am unable to understand this concept i mean just because creation of something took a certain amount it's not necessary that this value will be it's fair market value always. For example if construction of a building takes a certain amount it's obviously hard to say that this value will be it's fair market value because cost of an exact new construction might have increased due to inflation or gone down due to some pricing revisions of material.

This is how intrinsic value of commodities is being measured based on production costs.

Construction is simple a bad example.
Gold is a good one.