It is difficult to value Bitcoin and other Crypto in the conventional sense: unlike equities and other conventional securities there is an income/cash flow component to valuations; Bitcoin is not a cash flow generating investment.
I see Bitcoin as something similar to the iPhone, in terms of valuation. The “network” effect is what drives the valuation...the more users the more value.
But Bitcoin should be valued significantly higher than an iPhone. Apple, the central authority in this case, controls the supply of iPhone. Just like the Federal Reserve, when Apple needs $, they release a new iPhone, devaluing the one you have, and forcing you to upgrade.
Apple, as the central authority, can release new iPhones when ever they see fit, acting in their own self interest. A theoretical infinite supply.
Bitcoin on the other hand, has the same “network effect” as the iPhone, but without the controlling central authority and infinite supply. As people adopt, the price can only rise.
I remain bullish on Bitcoin and of Cryptos.
Ole!
Jose.