LOL? This looks like a scam. These guys give you a passcode to redeem your BTC? Really?

Armory is the way to go to store BTC offline.

for the noobs in the audience

Can you explain how you calculate the true value of 1 BTC?

he will use the potential market cap (in his view) and divide by the number of coins

what does this mean?

Take the potential market cap if bitcoin is successful and divide by the total number of coins.

Calling bitcoin a bubble would be similar to calling Facebook a bubble because it grew thousands of percent a year when all that really happened was the utility of Facebook increased at a very fast rate, which in turn drove the value increase.

I disagree with this analogy.

Facebook's valuation grew tremendously as a productive asset - providing returns to shareholders of a company.

Bitcoin is not a company, will never return profits to shareholders. It is not a productive asset. It is a very speculative currency, albeit unique from traditional currencies.

It may revolutionize the monetary system for a long time to come. But it probably won't.

I disagree with you for reasons that I've already listed in this forum, but I'll respond briefly.

To me, it's obvious that bitcoin will eventually provide more value to the world than Facebook. I don't understand how someone could argue otherwise.

It's interesting that you say bitcoin may revolutionize the monetary system at the end of your post, but it's preceded with statements that contradict that comment.

I guess I'd contend that bitcoin is a productive asset and that it has created returns for a number of people already, and that it will continue to do so in the future. Additionally, it's possible to look at bitcoin in terms that are not speculative. Bitcoin's value is simply growing exceedingly quickly and the price is rising to reflect that. We are in the early stages of a s curve.

The next sentence is "but it probably won't". I'll elaborate on that and say "most likely it won't".

In summary, bitcoin is not speculative because it's price is rising exceedingly fast. Yikes, got it.

lolcoin.
"To me, it's obvious that bitcoin will eventually provide more value to the world than Facebook. I don't understand how someone could argue otherwise. "

Arguing otherwise:

the government is loving facebook the information there is cheap and is immensely valuable and will continue to be forever, regardless of how dumb it is in reality. The government loves reading about what kind of smoothie you got and how it wasn't cold. On the real they like keeping tabs on suspected terrorists and people in general which is way more valuble than a controversial crypto currency. Facebook just donated 1billion dollars in stock for PR. Bitcoin cant do that because its a nerd currency that only a few people Globally accept. ok ok maybe in some **** poor country w a ****ed up economy they take them for right now but in the future... naaaaaaaaaaaah.

bitcoin is past the make crazy money stage anyway IMO , you can maybe still make something off speculation but Its ******ed in general. Prostitutes and drug dealers....( whoops silk roads shut down so scratch that) accept it . Govt's are not down w it. what If FTP or PS says here well pay you in bitcoins? youd be like wheres the monies! You would all flip ****.( except for bitcoin boom who is clearly a heavy investor)

Just because your name is bitcoin boom and you have a hard on for bitcoin because you bought a ****load doesnt make it valuable to everyone. Yes to you it is. To me, I wish you luck with your very funny money. Anyway keep the ****ing 100 microwaves going to mine for the fraction of a bitcoin and enjoy paying your electric bill in CASH .

sorry Im not convinced Ill put my money elsewhere anyday. /yeah i know there are bitcoin millionares but that aint you. it aint going to be you. A smart investor will dabble and find better safer and probably more lucrative returns elsewhere.

Peace

[ ] Coherent argument

True my argument is ****ty. But tell me more about how Bitcoin is safe and how your cashing it out now. Pay me in bitcoin to shut up. oh wait you cant your **** is all ****ed up

http://www.reuters.com/article/2014/...A1B2AN20140212

I may not be a genius but your a fish if you dont see the argument in "Ill put my money elsewhere anyday. /yeah i know there are bitcoin millionares but that aint you. it aint going to be you. A smart investor will dabble and find better safer and probably more lucrative returns elsewhere. "

Smarty pants put your money where your mouth is. Oh wait you cant withdraw it! whoops

If you can see past my humorous mocking of this fake currency you will realize bitcoin = stupid. Pay me. not in bitcoin.

i'm really disappointed to see taylor caby posting this nonsense. he seems a lot smarter than to think that the visual appearance of a price chart has a meaningful relationship to its future behavior.

i dont understand how you came up with this formula

what other financial instrument/asset price is calculated this way?

I think it's more that market cap = price per coin * # of coins and since # of coins is known (has a max) if you make an assumption about one of the other too then the third value is given

kutty, my tongue-in-cheek graph was a representation of SmokeyJ's post directly above it.

he is eluding to the fact that since the price went from .10 to $1, this graph and exactly what taylor posted, has been posted. i do think it sort of holds each time. but the cycle just repeats so far on an exponentially growing baseline.

why did he only show the last 2 years?
- maybe because looking earlier in time is useless on a linearly scaled Price chart because you can't really see anything down there.

why is he using a linearly scaled Price chart?
- i dont know. Bitcoin is a technology and is growing like a technology, IE, exponentially. things that grow exponentially are best graphed using a log scale. (IMO)

this is an all-time chart using a log scale. i've added some lines to help the eye. its been a bumpy ride up no doubt.
yellow, price (white tracks price)
purple, exponentially growing baseline.

people should really stop talking about the bitcoin market cap as if it is meaningful. it means absolutely nothing and i feel that the majority of the people that bring it up do so because it is the largest number they can mention in relation to btc. the price of bitcoin is just a reflection of what the buyers are willing to pay for it and what the sellers are willing to sell it for. a market cap of 10 billion USD does not mean that there is actually 10 billion invested in bitcoin.

Calling it a formula may be overdoing it.

Yeah, so you're not really qualifying your statements when you say "it can't be a bubble because its not above its true value".

((What you think the market cap COULD be) / Volume) is not an accurate or acceptable method of calculating its true value.

bucktotal,

Here is an all time logarithmic chart that was posted today: https://www.dropbox.com/s/6sj6px10nd...2000.37.44.png

Just go through all my posts. I've already outlined my reasoning countless times in this very sub forum. Alternatively, you could point to something that says I'm wrong and also points to concrete evidence supporting whatever your case may be. Will I find your reasoning on this topic clearly outlined in your previous posts like mine is? How about you post something meaningful that takes some time for you to come up with, and I'll take the time to try and refute it for you?

Actually I have been following your posts. I haven't made any statements in this thread, I've just been curious. Alternatively, you are confident enough to analyze prices and exclaim value.

While I think cryptocurrency has a big future, you seem to be way over-the-top on the subject. You have repeatedly asserted the price is not over-valued despite it's hyper-rapid growth. When asked to provide reasoning for this you challenge opponents to prove why it's NOT true, which is fairly comical. When pressed, your primary evidence is "well it could be huge so the price now is fair". That's not really concrete.

Bitcoin Boom, other than your personal opinion of the future market cap of Bitcoin where does a bitcoin derive its intrinsic value from?

Well to be fair, I did say "my point of view" so I'm not necessarily exclaiming value.

The reason I challenge people to provide reasons is because I have already provided the reasons for my over the top thinking, they are littered throughout my posts, while I have not seen nearly as much effort from users challenging my opinion. Here is a post addressing where I think the value of bitcoin comes from. I can dig up other similar posts where I answer the question you asked as well as I am able when I find some extra time.

Do you have a "method of calculating bitcoins true value that is accurate or acceptable" that you would like to share with me? I certainly don't have one and I apologize if my posts insinuated that I do. As you can infer from the earlier post by me that I linked to in this response, I am working off broad assumptions. I'm not sure if anything else is possible given we are talking about the first popular digital currency that is backed by nothing but math and individuals who find it useful.