- Cost Method -How quickly you get your investment back
- Market Value Method -What someone will pay you for the asset
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiALNG9o5Z8bmXT9X4_4gskDsxnbAzstQhDTIgyHHEKtt7X-WEdb4dHEx0ogOR6wVuzLKcGrGzIFnmaTxyOa5_naTQyBzsUwUJL9HctlhtV3Pm1HysPcHadO22AHfcM1ah9SUOU/s320/scrnli_10_30_2019_6-50-10+AM.png)
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.