One way to think about the valuation of a bitcoin in U.S. dollars is to assess its change in value over the past eight years or so (bitcoin started to have meaningful value in early 2011). For this purpose, use the Relative Purchasing Power Parity condition and restate it in a way that relates the expected change in the nominal exchange rate of BTC (E in [USD/BTC]) to the rate of money growth of bitcoin (AM/MB), money demand for bitcoin (ALB/LB), and the inflation rate of the U.S. CPI (7). Some of these quantities are quick to find. You can compute the change in the nominal exchange rate of BTC from https : //blockchain . info/charts/market-price?timespan=all, the rate of money growth of bitcoin from https: //blockchain. info/charts/total-bitcoins?timespan=all, and the U.S. infla- tion rate from http://www. usinflationcalculator . com. What can you infer about the change in demand for bitcoin? Another way to think about the valuation of bitcoin in U.S. dollars is to estimate a plausible value. For this purpose, use the Quantity Theory of Money, which relates the supply of bitcoin M and the velocity of bitcoin v (say in 24h) to the price of a U.S. dollar in terms of bitcoin PB (in [BTC/USD] so that 1/ PB = E) and the volume of bitcoin transactions QUS (in 24h). You can find bitcoins in circulation M at https : / /blockchain . info/charts/total-bitcoins and the Estimated Transaction Volume in USD QUSD (over the past 24h) at https : / /blockchain . info/stats. You can compute the velocity of bitcoin v (over the past 24h) as the ratio of BTC sent in 24h at https : //bitinfocharts. com/bitcoin (in BTC) and MB (in BTC). What is your valuation of bitcoin in dollars E = 1/PB