Golem price has dumped hard recently and that may cause panic among some holders who aren't confident enough with their investment. Golem's current market cap is about 290,088,210$. It has gone down a lot compared to BTC. This could lead to a further drop due to panic selling. 

The type of people who panic sell tend to be those that don't research crypto or do not have the necessary intelligence/knowledge to research the coins they invest in.  I am writing this valuation calculation system so that they can get an idea of how to value Golem.

Golem Network's **non speculative** value is dependent on the use of the GNT token. Which is to say, how much cgi render power is brought using the GNT token. This puts a buy pressure on the market for GNT Token. The more render power is brought, the higher GNT goes. I don't have any stats on how much render power is brought everyday (could someone help me with that in the comments?) so I will take a guess that it is in the range of few hundreds or maybe a few thousands of USD. 

The buy pressure created by that probably gives golem a value of maybe, 1 - 10 million (read the full post before shouting FUD). After all golem has just started out. 

Now, lets try to put a valuation range for the **speculative** value of Golem. Speculative value can't be calculated exactly because it is speculative value. So, I will try to put a valuation range for GNT by using some logical parameters. The first thing to consider is the value of this Ethereum address: 0x7da82C7AB4771ff031b66538D2fB9b0B047f6CF9

It is the address where Eth raised by the Golem ICO is stored. Its current value at the time of writing is $174,566,400. If for some reason GNT devs decided to stop working on Golem or they suddenly died unexpectedly, then they would have to refund that money to the investors (if they don't, there will be lawsuits). So, it is quite rational to add it to the speculative value of Golem. 

The second reason for speculation is the future potential of Golem. Currently, if a studio wants to make a cartoon film, they have to either buy a lot of very high end hardware or buy render power from render firms. But the golem's free market system will benefit the buyers because they won't have to pay the fixed prices set by render firms. Here's an official blog post by the team about how it benefits the buyers: https://blog.golemproject.net/why-should-render-farms-be-afraid-of-golem-3dd1b9e70f47

When Golem is ready for that, I mean when golem infrastructure is good enough so that studios can buy huge amounts of render power for lower costs, then the price of golem is likely to rise very high (To the moon). Speculators are betting that this will happen and that will give them huge profits. There is no way of calculating this. 

So, Golem's value = 1-10 million + 174 million + the value that comes from people believing in the success of Golem.

[Personal note: I personally value Golem in the 200 to 500 million range (July 2018).]