RE: Why Bitcoin Mania Is NOT Tulip Mania
As somebody who went through the process of selling a company which he founded and grew, I dare to think that your valuation process is highly biased. You're confusing value of assets (Bitcoins) with shares in a company (a potential company that is the Bitcoin "manager"). In our case, there's no such thing, but even in that case, any due diligence process will take into account far more than just the rough, financial numbers. There are things like intellectual property, social impact, market contingency and alike. And it will take into account, primarily, the market price for any goods or assets.
And the market price right now for Bitcoin is tickling the $4000 mark. It may be that the market is inflated right now, but if you ask me, I don't think it is. Of course, a correction may be due, but the influx of value in the network gained too much momentum to be stopped or to fall abruptly.
Yeah, valuation as shares is what I did. It would most likely not apply as it's open source. It would actually be chaper as an open-source valuation. Intellectual property applies maybe to Satoshi, but not to Bitcoin as it's open-source, the impact is already in the foundation equation. That's the reason Blockstream has probably applied for defensive patents, as of now Bitcoin can claim nothing extra for valuation.
Most of the current price is branding and over-trading small volumes.
This market is not due for a significant correction (I prefer the term fall in price, is less biased) is most likely getting ready for an explosive expansion. If the price is what you worry about, don't. It will increase beyond your wildest dreams. The consequences of this will most likely not be paid by us.