Bitcoin’s real price?

Dimitri Fedotov
2 min readMar 5, 2021

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Let us assume that the truest, most accurate value of Bitcoin is $100,000. And I don't mean that this could be the case in an ideal world, or at some point in a distant future this blockchain-based issue will actually grow in value. I mean that in this world — now — the most optimal evaluation for this currency is $100,000. Let us assume it to be the real truth.

Well — why would there be a difference between the market appraisal we see today (about $47K) and the price that I arbitrarily suggested?

I could think of one good reason…

What if the gap in my evaluation (albeit fictional) and the current market pricing is created by the novelty of this particular ‘coin’?

What if inertia and habits of many centuries prevent us from letting go of the old school ways of banking and payment and embracing a new and a better system?

Majority of people simply don't know enough about cyber currency and don't feel comfortable getting into crypto culture quite yet. Once people learn more about it — the perceived daily value may match its true level.

Until then we don't have a clue how much Bitcoin really is. We know how much she appears to be. It is safe to assume that a cost of manufacturing and storing of an ice cream stays relatively stable, but the perceived value of the given item drastically differs in Miami (in August) from one in Chicago (in January).

It is likely that Bitcoin’s (or a similar crypto’s) season will eventually come, bringing stability and daily trust to the new form of finance. Until then one might want to proceed with caution.

P.S.

It appears to me that we — as humans — create our own reality: laws with lawyers, cars with parking tickets, clear state borders with passports and visas. Paper product — which is used for printing law, tickets and personal ID cards has limited intrinsic value, but is used to support and maintain a certain reality of relationships among humans, through law enforcement, traffic and migration regulation. It seems to me that cryptocurrency is and can be used to develop and extend a similar reality: this time of financial practices, and more. Of course, with time one may hope that speed, security, ability to use and comfort in using will be established in the crypto markets.

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