In a human relationship, money plays a very pivotal role and they are a central element as well. People exchange them, and they find it hard to explain how it comes from or how others are accepting it. The inflation and deflation in the market is a widespread cause of social disruptions. However, new technologies like blockchain are providing alluring and cryptocurrencies are providing transformative opportunities to the ones who are into trading and exchange of money. At the moment of innovation, often people flare some suspicion, and if the risk is involved with the money then it gets greater. Bitcoin has become a plausible currency which is an alternative solution and it highly depends on a very superficial notion which attracts attention.
The bitcoin evolution has a more secure payment technology which offers a way to do the secure transaction and there is no need to have authority from a bank or an arbitrator. It promises to replace the electronic currency and holds the possibility of a great transformation which is linked with a broken state of money.
Quantitative Approach of Bitcoin
There are plenty of investors in the market who are following a very quantitative approach to decide whether bitcoin holds a very fair value at any point of time. The bitcoin tried using the estimating cost of mining to bid up its value and later investors come up with the idea of calculating the market cap as a tool to evaluate the concept. The BTC forum determine the valuation metric and discuss the value over difficulty concept associated with the bitcoin
The measure helps in changing the saving behavior and store the value as a payment utility to identify the goal of evaluating the payment mechanism. The main goal is to identify the specific data which helps in saving the changing behavior of trading.