Nouriel Roubini: Bitcoin Is a ‘Ponzi Game’

Post by james1071 » Tue, Mar 11, 2014, 2:35 PM UTC

shawabawa3 wrote: post #100

james1071 wrote: post #99

Earlier quoted context omitted.

Flat-rental income 20k p.a. Valuation 400k at 5% yield. Maximum plausible valuation might be 600k Lowest plausible valuation might be 250k No such exercise is possible with Bitcoin, the 'value' of which could be argued to be anything.

That's kind of a circular argument. How did you get the rental income? In the end, everything is worth what its purchaser will pay for it. It's no different for bitcoin as for anything else

Post by james1071 » Tue, Mar 11, 2014, 4:30 PM UTC

shawabawa3 wrote: post #102

james1071 wrote: post #101

Earlier quoted context omitted.

er..you check local rents and use that number instead of guessing. property values ultimately determined by rents and yields. this is not circular at all. not possible to value Bitcoin in the same way.

> 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…