Market valuation of bitcoin
Dec 14, · Bitcoin market capitalization as of December 13, Price comparison of 50 cryptocurrencies as of December 14, Number of Bitcoins in circulation Market capitalization (often shortened to market cap) is the approximate total value of a cryptocurrency, typically shown in US dollars. The market cap of a cryptocurrency is calculated by multiplying the number of coins or tokens in existence by its current price. About Bitcoin Bitcoin price today is $22, USD with a hour trading volume of $54,,, USD. Bitcoin is up % in the last 24 hours. The current CoinMarketCap ranking is #1, with a market cap of $,,, USD.
Market valuation of bitcoinBitcoin's Fair Market Value Guide
So how do you determine what the market sees as the coin's fair value or latest bitcoin valuations? How do you even calculate the fair market value of a currency that has appreciated faster than the shares of even the hottest technology stocks?
This question has befuddled investors and analysts for years when it comes to bitcoin. The fair value of bitcoin all comes down to that: it has value because people think it has value! What does that mean? Expected value is literally the anticipated value attributed to an investment in the future--in this case, bitcoin--because they believe the underlying technology has the potential to be revolutionary.
In addition, the fair value of bitcoin can be calculated using the principles of demand and supply of bitcoin available on the blockchain. If there is a high demand that outpaces the number of new bitcoins that are mined, this pushes up the fair price for bitcoin. One expert also outlines three theories regarding how to derive the fair market value of bitcoin, based on:. The value of bitcoin is always changing, based on the demand for the cryptocurrency as well as the public perception of how much the coin itself is worth.
Investing in cryptocurrency is one of the most volatile investments, meaning, any potential investors must do their due diligence. However, for a chance to make a huge profit or simply be part of the fun , knowing how to appraise the coin's fair market value will be key.
Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein.
Your Money. Personal Finance. Your Practice. Popular Courses. Show sources information Show publisher information. Figures for November are per day, all dates before are per month; Closing price, at the end of the month and at the end of the day. Unique cryptocurrency wallets created on Blockchain. Average Bitcoin transaction confirmation time This feature is limited to our corporate solutions.
Please contact us to get started with full access to dossiers, forecasts, studies and international data. Try our corporate solution for free! Single Accounts Corporate Solutions Universities. Popular Statistics Topics Markets. How much is Bitcoin worth today? The average price of one bitcoin was approximately 19, U. Bitcoins are traded on several independent exchanges worldwide and there may be differences in the prices. The bitcoin price index provides the average price across the leading global exchanges.
The first price hike occurred during when one bitcoin was trading at around 1, U. Four years later, bitcoin experienced a meteoric rise and reached record highs, with some exchanges having the price of a single bitcoin at approximately 20, U. However, prices soon started to tumble in the months that followed. In the third quarter of , there were around What is cryptocurrency? Cryptocurrencies are virtual currencies that use blockchain technology to track transactions through a network of computers.
They can be used as an alternative currency to buy goods and services, but many people buy them as an investment, hoping that the value is pushed up because others want them in the future. Bitcoin held a 66 percent share of the total cryptocurrency market in There have been calls for the crypto market to be more regulated because money is created and transferred without the actions of monetary authorities.
Bitcoin price from October to December 14, in U. Loading statistic Download for free You need to log in to download this statistic Register for free Already a member?
Log in. Show detailed source information? Register for free Already a member? Show sources information. Show publisher information. More information. Other statistics on the topic. Software Bitcoin blockchain size as of December 13,