So that is how to value Ryanair as an investment.
You can't apply any of that, or no one has applied it, to Bitcoin. So as an investment, it's worth zero.
You have to provide some analysis or calculation. Some basis for saying they are worth $8,000 - each!
In theory, I can issue a Burgess Coin, and if I can persuade the World that each one is worth 100 pints of plain, then it becomes worth 100 pints of plain. But you would probably trust me even less than you would trust the evil Central Bankers.
At last we are getting something Boss. Here is a methodology not unlike the one I cited from Investopedia. There are many theoretical objections to the methodology - velocity of circulation, store of value etc. but it is at least something. So can we agree for sake of future argument that if bitcoin eventually settles down as just another boring transactional currency it would be worth c. $ 10k per 1% of global penetration. It is obviously nowhere near that now and the current price should be seen as speculation on the final resting place, fair enough.But hey, I dont want to be a spoilsport, so here is a calculation if bitcoin 'takes over the world'!!!
All the money in the world / 21m units of bitcoin = $ 2,695,769.78 per unit of bitcoin.
Alternatively, 5% of that = $52,000 odd.
But I think Firefly in post # 20 made a good point, i.e. if significant use is made of cryptocurrencies to support criminal activities, and a quick trawl of the Internet indicates this may be happening, it adds an additional factor in evaluation a cryptos 'value'. Firefly said “If/when this [i.e. the intrinsic value will be limited to the value placed by those conducting illegal activity] happens, the price will plummet and those hoping to make a return on holding the currency itself will lose out and probably leave with what they can.” I think this is a valid point and if correct may well eliminate its USP, i.e. the lack of central bank control, which reasonably would influence its future price.Cash is useful here as well.
You're suggesting that the only USP that crypto has is that it appeals to the criminal fraternity?I think this is a valid point and if correct may well eliminate its USP, i.e. the lack of central bank control, which reasonably would influence its future price.
The central banks can go on managing and improving FIAT. And surely they will do a better job, even if crypto ends up just as a tiny bit of competition.
So I can look at Ryanair's EPS
and look at their outlook
and then multiply that by a p/e ratio.
You can challenge my analysis and forecasts
So that is how to value Ryanair as an investment.
You can't apply any of that, or no one has applied it, to Bitcoin. So as an investment, it's worth zero.
Wandering a bit from the point initially raised?
You're suggesting that the only USP that crypto has is that it appeals to the criminal fraternity?
Criminals have used cash for years - lets not throw the baby out with the bathwater.
Yes, I take your proportionality argument on board. We don't have numbers but I'd guess that's likely at this early developmental stage.It comes down to proportionality.
Criminal activity accounts for a much higher proportion of total transactions by revenue in Bitcoin versus those with FIAT, I would imagine.
Hackers are increasingly moving to Ethereum and other more moderately priced forms of cryptocurrency as Bitcoin has become too volatile for their tastes. This will in turn lead to more drops in the price of Bitcoin.....
Yes, I take your proportionality argument on board. We don't have numbers but I'd guess that's likely at this early developmental stage.
How significant remains to be seen.
Proportionally - yes ...i'm quite happy to go with more than just likely. However, we really don't know - nor do Forbes ...nobody knows for sure. We don't have numbers.With respect I think it's a lot more than "likely".
I'll just deal with this snippet seeing as we're just supposed to be addressing Intrinsic value... as to be a store of value requires the value to be intrinsic.
Well, I am afraid you are wrong. You are getting confused between price and value and quoting dictionaries doesn't really add anything.
No might about it - he is wrong. The only case where he would be right is if trading in Bitcoin, or using Bitcoin to buy goods and services stopped and nobody was willing to exchange other items of value for it. That hasn't happened (yet): if it ever does, its value will then be zero.If Brendan says Bitcoin has no value, he might be wrong.
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