Bitcoin’s Fundamental Fair Value

 

NIA has created a chart showing the price of Bitcoin from July 4, 2013 through today in comparison to NIA’s estimate of Bitcoin’s fundamental fair value based onĀ growth in the amount of weekly Bitcoin transactions.

When NIA officially suggested Bitcoin on May 30, 2016 at $531.56, it had a fundamental fair value of $585.25. Over the last eleven months, as Bitcoin has soared 165.9% to $1,413.31, its fundamental fair value has only increased by 47.6% to $864.07.

Since NIA’s suggestion of Bitcoin, its price has increased 3 1/2 times more than its fair value. Bitcoin was 9.2% below fair value at the time of NIA’s suggestion, but today is trading for 63.6% above fair value.