How to value Bitcoin

Monetary goods (stuff that has the properties of money) follows the Marxist Labour Theory of Value

If a particular good has the properties of being money, it'll naturally be hoarded to be exchanged for goods and services

This hoarding causes the price to go above the price that it's useful as a consumable ("utility")

This excess valuation is called the Monetary Premium

But any sensible person would realise; why should I exchange my labour for money when I can just create it myself?

So the demand comes from the fact that it's a useful money, and the supply comes from those people realising that there's a monetary premium so they go ahead and attempt to debase it

As long as making the money is worth more than a job, people will do that, until the point it isn't profitable (where the cost of money and the price of money is the same)

Therefore, the fair price of Bitcoin is the energy cost to make it

But over time, this fair price goes up, because the supply is completely inelastic. If every single person on earth mines Bitcoin, the same amount comes out, it just costs more when more hashpower goes online

When it's profitable to mine Bitcoin (during a bull cycle), a LOT more hashpower comes online, permanently increasing the electrical cost to mine one

Every 210,000 blocks, the energy cost of mining a Bitcoin doubles