Yet, I have to disagree with you for many reasons:
1- Bitcoin is a currency. So, it does not have a fair value. It has a price determined by the market.
2- Bitcoin can be thought of as gold too. People trust it to store value on the long term.
3- I don't agree with this statement:
Yet, real usage has increased SO MUCH SLOWER than price rises.
I think you are ignoring that BTC is used heavily inside the crypto world. It is the entry point for buying any other alt coins. So, add that to the usage and you will see that its price is fair. Remember: It is a new economy, and BTC is its currency.
4- It is very normal for a rapidly growing industry to get a higher price than its immediate value. Bitcoin and crypto currencies are exploding, not only growing.
5- Many countries are legalizing bitcoin. Japan already did. Malasia is on the way. Many will follow. That, in addition to the publicity it is receiving, will cause some mass adoption. Once that happens, the usage will grow much higher than the price.
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Well it depends what you consider bitcoin's usage. If it is to be a commodity like gold then no it's not overpriced, quite the opposite. If you want it to be an actual currency you can use everywhere to buy stuff etc then yes it's currently overvalued.
You seem to be knowledgeable about investing in cryptocurrencies, @hat7rick. I went to your profile to follow you, only to see that it is empty. That is a shame.
i agree hat7rck , bitcoin will crypto gold and altcoin will be dailypayment. Also u need in most cases firtst BTC to buy altcoin... Also big news for BTC are coming!!!!if u want lern more follow me !
If the value of every crypto were valued based on their current usage, most alt coins would be significantly overvalued compared to Bitcoin.
If i am the best lawyer in the world but no one is currently using my services because i broke my leg, does that mean i have no value as a lawyer? Bitcoin may not be used very widely at the moment but its future potential for usage is potentially enormous.
Speaking of usage, how much is IOTA used currently?
any assessment of its value either as currency or commodity considering usage as a main factor needs also to remember that there is a limited supply of Bitcoin and fairly low vis a vis most other coins or tokens. there are also privacy and political factors that may well impact price going forward. very foggy arena within which to predict the future. I. myself, see short term volatility with longer term growth. But who really knows -- you bet your money and takes your chance.
A rational approach to the trillion dollar question! I've written about the same topic, amongst others, and plan to dive deeper in some upcoming posts.
I will follow along to see where you take it in Part 2.
I do agree with you, currently with the availability of much better options for transactions intrinsic value of Bitcoin has diminished. Though it can be improved with soft-forks if all the community agrees.
Do check out my analysis on whether Bitcoin, cryptocurrencies and blockchain are a bubble or disruption. https://steemit.com/bitcoin/@kbad10/bubble-or-disruption
Thank you, @heavy. A good post as usual. Upvoted!
Yet, I have to disagree with you for many reasons:
1- Bitcoin is a currency. So, it does not have a fair value. It has a price determined by the market.
2- Bitcoin can be thought of as gold too. People trust it to store value on the long term.
3- I don't agree with this statement:
I think you are ignoring that BTC is used heavily inside the crypto world. It is the entry point for buying any other alt coins. So, add that to the usage and you will see that its price is fair. Remember: It is a new economy, and BTC is its currency.
4- It is very normal for a rapidly growing industry to get a higher price than its immediate value. Bitcoin and crypto currencies are exploding, not only growing.
5- Many countries are legalizing bitcoin. Japan already did. Malasia is on the way. Many will follow. That, in addition to the publicity it is receiving, will cause some mass adoption. Once that happens, the usage will grow much higher than the price.
This comment has received a 5.55 % upvote from @buildawhale thanks to: @sadekj. Send at least 0.50 SBD to @buildawhale with a post link in the memo field for a portion of the next vote.
To support our curation initiative, please vote on my owner, @themarkymark, as a Steem Witness
Well it depends what you consider bitcoin's usage. If it is to be a commodity like gold then no it's not overpriced, quite the opposite. If you want it to be an actual currency you can use everywhere to buy stuff etc then yes it's currently overvalued.
See here a very insightful analysis by hacked.com:
https://hacked.com/tale-two-revolutions-comparing-dot-com-bubble-cryptocurrency-bull-market/
You seem to be knowledgeable about investing in cryptocurrencies, @hat7rick. I went to your profile to follow you, only to see that it is empty. That is a shame.
I hope you consider posting here in Steemit.
i agree hat7rck , bitcoin will crypto gold and altcoin will be dailypayment. Also u need in most cases firtst BTC to buy altcoin... Also big news for BTC are coming!!!!if u want lern more follow me !
Thanks for reading°°° and
!
Please commend, what is your opinion!
Also upvoted and resteemed! :o)
https://steemit.com/@cryptoinvestinfo
@cryptoinvestinfo
your CryptoInvestmentExpert
If the value of every crypto were valued based on their current usage, most alt coins would be significantly overvalued compared to Bitcoin.
If i am the best lawyer in the world but no one is currently using my services because i broke my leg, does that mean i have no value as a lawyer? Bitcoin may not be used very widely at the moment but its future potential for usage is potentially enormous.
Speaking of usage, how much is IOTA used currently?
any assessment of its value either as currency or commodity considering usage as a main factor needs also to remember that there is a limited supply of Bitcoin and fairly low vis a vis most other coins or tokens. there are also privacy and political factors that may well impact price going forward. very foggy arena within which to predict the future. I. myself, see short term volatility with longer term growth. But who really knows -- you bet your money and takes your chance.
Thanks for letting us know about BTC bubble.
A rational approach to the trillion dollar question! I've written about the same topic, amongst others, and plan to dive deeper in some upcoming posts.
I will follow along to see where you take it in Part 2.
@heavey got you a $1.43 @minnowbooster upgoat, nice! (Image: pixabay.com)
Want a boost? Click here to read more!
I do agree with you, currently with the availability of much better options for transactions intrinsic value of Bitcoin has diminished. Though it can be improved with soft-forks if all the community agrees.
Do check out my analysis on whether Bitcoin, cryptocurrencies and blockchain are a bubble or disruption.
https://steemit.com/bitcoin/@kbad10/bubble-or-disruption
This post has received a 10.58 % upvote from @booster thanks to: @heavey.
Awesome article!