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RE: Buckle Up Buttercup Because the Bitcoin Price is in Uncharted Territory

in #bitcoin • 8 years ago

Bitcoin's price is determined by 2 aspects:
(1) its utility (normally as a payments network, but other uses too)
(2) its hoarding component (similar to gold)

I agree fees are a good indication of price component (1). The ratio between the (1) and (2) is ultimately measured by monetary velocity. Currently the hoarding aspect is quite a large component of Bitcoin's valuation, similar to gold, so I suspect the fees is a secondary valuation indicator.

FWIW, the mooning of the fees market has been a result of a very recent demand driven fees market emerging since March 2016. I posted this on my Twitter and is part of a larger study I'm doing on the fees market right now.

https://twitter.com/dangermouse117/status/814406103647649792

8 years ago in #bitcoin by
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     8 years ago 

    dangermouse117 Willy Woo tweeted @ 29 Dec 2016 - 09:42 UTC

    #bitcoin’s hidden story of 2016. We saw a demand and supply driven fees market emerge for the very first time. Good… twitter.com/i/web/status/8…

    Disclaimer: I am just a bot trying to be helpful.
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