Bitcoin's network value

There are a number of ways you can value an asset. Here are the 2 most important ways.

1. Cost Method -How quickly you get your investment back
2. Market Value Method -What someone will pay you for the asset

When analyzing Bitcoin's market value we see a 140 Billion variation over the last 2 years; which is why there is a lot of truth to the fact that most people don't understand Bitcoin.

Another way to evaluate is via what people have paid for it.

This is called realized market cap. As you can see by the graph people as a whole have paid 102 Billion to store Bitcoin in their wallets. The value really went up 2 years ago when some people where paying US$20k to get a Bitcoin. If you average the cost out per Bitcoin -- Realized Market cap divided by active wallets-- people will have paid US$5700 for 1BTC. This means to me the cost of Bitcoin going below US$5700 is slim.

My history in Bitcoin

9 years ago today Doug and I where having a hard time understanding Paypal's role in our "current" monitary system. So, I mentioned the idea of Bitcoin to him. This (according to my gmail history --see image) was my first conversation with a friend about sending money over the internet. Paypal was already 10 years old and generating almost 1 billion every year. This is when Paypal decided to freeze money that was destined for Bitcoin. Now there are over 400 exchanges and every fiat currency can find a way into Bitcoin. In Canada yesterday, we had 86 million go in/out of btc/can, which is normal. See CBIX  What is so amazing to me, even though Paypal tried to stop Bitcoin, Bitcoin has now come out ahead.  Bitcoin is now worth 1/4 of a trillion dollars.