"The market capitalization of digital currencies has soared to around $100 billion since the start of the year, with bitcoin almost tripling in price to as high as $2,938.50 on Tuesday, as the frenzy around cryptocurrencies grows. Demand is swelling as more companies embrace blockchain and the similar technologies backing the various methods of exchange and some investors see it as a haven from uncertainty across the globe.Bitcoin’s Valuation Is Confusing Currency Analysts - Bloomberg
While the technology is used as a means of payment -- the most basic function of money -- it may be better to view digital currencies like gold or say, a painting, than a traditional currency. Bitcoin is more volatile than even the most capricious fiat currencies and its decentralized structure makes it difficult to consider valuation."
Thursday, June 08, 2017
Bitcoin’s Valuation Is Confusing Currency Analysts - Bloomberg
Final paragraph: ""You can’t really come up with a valuation for it and it doesn’t yield anything yet people perceive it as a safe place just in case everything else goes completely nuts," said Brad Bechtel, a currency strategist at Jefferies LLC."