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by SeoxyS 3200 days ago
If you're going to put a specific value on something, it's be much more accurate to calculate it as the sum of the entire demand for that something divided by its quantity.

To take the 100 shares at $500 example from @stanmancan, if one person is willing to pay $500, another 10 is willing to pay $400 for one share each, and one more person is willing to pay $300 for 20 shares, and one large investor is willing to buy up the rest for $100 only, the total demand for the whole company is $14,400 for 100 shares or $144/share. That's the true value.

I can guarantee you that there isn't even an order of magnitude close to $8B of demand for the artificially created and restricted BCH, so that value wasn't really created.

1 comments

I'm not sure that's accurate either. That just says that the people who want to buy [Share|BTC|BCH|Whatever] value it less than those who currently hold it.
It's not perfect either, I agree. It's hard and subjective to define what the real true value of something. But one common way is to define it as "what someone will pay for it" -- that's the math I did above.

Anyways, I'm not trying to argue that the value of that hypothetical company is $14,400. I'm trying to argue that it's not anywhere near $50k. (Disproving the GP's example that BCH created $8B of value overnight.)