Bitcoin is a currency and was designed as such. Its value is determined by the available supply, liquidity, and the volume of “Bitcoinized” assets—whether through fiat conversion or direct exchanges for Bitcoin. Additionally, it is influenced by other variables that apply to any financial asset.

My question is: does Bitcoin run the risk of being undervalued? Many transactions occur outside the globally monitored systems, such as exchanges, which makes sense since Bitcoin prioritizes decentralization, privacy, and individual control over money. However, this also means we don’t know the exact fiat spread of these transactions or even whether a parallel spread is applied.

I believe we have no way to determine the fair value of the entire Bitcoin market. Adoption is still relatively small, and transactions within a fully Bitcoin-based circular economy may not yet be significant enough to correct this potential undervaluation. Still, I can’t help but think that Bitcoin’s real value is much higher. I understand that it will likely reach its fair value as adoption increases and more assets are “Bitcoinized,” but that could take years.

This reflection came to me because I see speculators limiting Bitcoin’s potential by treating it solely as a financial asset. This keeps ordinary people away due to its volatility and allows large companies to accumulate more control over the supply, hindering widespread adoption.

I’d like to better understand how Bitcoin’s price is truly defined and hear opinions from those who have been in this free market for a long time—especially from those already living in a Bitcoin-based circular economy.