I would go on bitstamp and see what people are trading them for. That would be around ~$620 at the moment.
If you think this isn't a valid way of valuing something then tell me: How would you value a 2 bedroom flat in London? My guess is you would see how much similar flats nearby are selling for (and if you say you would get an expert valuation - how are they getting the value?)
> property values ultimately determined by rents and yields
And rents and yields are determined by what people are willing to pay to rent the property.
Just like bitcoin value is determined by what people are willing to pay for bitcoins.
You're right your argument wasn't circular, what I meant was you were just pushing it to another level. The sale value is based on the rent value, but what is the rent value based on?
As I have said, it is straight forward to come up with a valuation range for a property. At the bottom of the range, it would be attractive to borrow money and rent it out.
You cannot value Bitcoin like this because it does not produce an income and is not linked to the value of any other asset.
I would go on bitstamp and see what people are trading them for. That would be around ~$620 at the moment.
If you think this isn't a valid way of valuing something then tell me: How would you value a 2 bedroom flat in London? My guess is you would see how much similar flats nearby are selling for (and if you say you would get an expert valuation - how are they getting the value?)