Value of Bitcoin*
I am thinking how to value Bitcoin. If it is assumed like painting of Monalisa as previously shared by me, I believe it is not fully correct.
Let consider some facts here:
1. Bitcoin is secured by computer Network.
2. How much the total investment for the hardware of computer Network to secure Bitcoin Blockchain? Let say:$ x billions
3. Bitcoin is developed by thousands Developers. If we pay them all, how much is the salaries for them from the beginning? Let say: $y billions
4. The computer Network should be run using electricity and internet connection. How much is paid for all of them since the beginning? Let say : $z billions.
If we add them: $ (x+y+z) billions, can be assumed as: book value of equity
Just using P/B multiple, we can have price of the Bitcoin. Assume, book value of equity is $100 billions, if we apply 3x multiple, we get $300 billions market capitalization for Bitcoin.
Bitcoin is valuable as it has Network of computers, Developers, electricity and internet. We should add for Companies built to support Bitcoin.
The value of Bitcoin is security of Network. If we want to have a secured database, can we use Bitcoin Blockchain to store the database? Just store the data on Bitcoin Blockchain, then no body can hack it.
*Mamat Rohimat, Founder Thegreatcoin