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@deleted
Been thinking about what is a fair valuation with the minimum assumptions.
So what is one of these bitcoin really worth?
Well lets look at a currency which is a good store of value and for transacting with.
The mighty US dollar.
There are currently 1.2 trillion dollars in the M0 supply stream
$1 is worth currently approximately $1
(5714185% more than there are BTU)
Bitcoin
There will only ever be 21 million bitcoins
1BTU is worth currently approximately $1000
(99900% more than a dollar)
By this you could argue that currently bitcoin is currently undervalued by 5614285%
but....
The problem is currencies provide value in two completely diametric ways.
1.) As a store of value for when you don't need to trade
2.) As a transaction technology when you do need to trade
As a store of value bitcoin is a very poor option to the dollar.
It has no history of ongoing stability.
The distribution of Bitcoin is unclear however its suspected a large percentage are in the hands of a few original developers.
https://bitslog.wordpress.com/2013/04/17/the-well-deserved-fortune-of-satoshi-nakamoto/
It can also easily be irreversibly destroyed.
Its only advantage as store of value is its finite rate of supply
As a transactional currency its even worse, few traders accept it and costs are incurred with every transaction.
Cash dollars also provide far greater anonymity.
By this you could argue that bitcoins have no value