Bitcoin’s fair value is $35‚000 — but who’s counting?
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Bitcoin’s fair value is $35‚000 — but who’s counting?

Bitcoin’s BTCUSD surge to an all-time high may not say anything about bitcoin’s reality. In fact‚ it may be nothing more than random fluctuations above and below the cryptocurrency’s fair value. I base this on a valuation model that‚ following Metcalfe’s Law‚ relates bitcoin’s price to the square of the number of users. The chart below — courtesy of data from Claude Erb‚ a former commodities portfolio manager at TCW Group — plots bitcoin’s actual price over the past decade...