The ever more important question of valuing bitcoin, especially in these uncertain times is the topic of a new report released by GrayScale.
The report looked at various aspects to make sense of setting a value for Bitcoin in fiat terms (and otherwise).
The report looks at Bitcoin Valuation from these perspectives:
Relative Valuation
This looks at how Bitcoin fairs when compared to Gold, Cash and financial assets. It references the metric that Paul Tudor Jones used: "What was surprising to me was not that Bitcoin came in last, but that it scored as high as it did. Bitcoin had an overall score nearly 60% of that of financial assets but has a market cap that is 1/1200th of that. It scores 66% of gold as a store of value, but has a market cap that is 1/60th of gold’s outstanding value. Something appears wrong here and my guess is it is the price of Bitcoin."
Supply and Demand
Is there enough Bitcoin to go around? How much of the bitcoin mined so far is actually available and how much of it is lost? How many people are actually HODLing their bitcoins which essentially removes them from the market?
These and many other related questions are examined under this section.
Stock-to-Flow Ratio
The now famous Stock-to-Flow ratio in valuating Bitcoin is referenced as well and based on this model, how a $100,000 Bitcoin by 2021 seems obvious.
There are many other metrics referenced in this report and you can download it from their official page here.
Please note that the cover page art is from the report (and is owned by GrayScale).
