Is there some way to estimate the proper value of one Bitcoin? For example, if it is stock, there can be P/E ratio, or Price Sales ratio. For Bitcoin, are there some common ways people use to estimate the value of one Bitcoin?
Unlike stocks or precious metals, Bitcoin has no inherent value; it is only worth what people are willing to pay for it, and the only way to determine that is through trading activity on an exchange.
You can try to use the same technical analyses that are used on the stock and forex markets to predict the future price, but it's incorrect to call that its &quot;proper value&quot;.