I'm trying to understand how a bitcoin is valued. In my mind, it seems like it can be broken down with some basic math. For instance, if there is $50 trillion worth of "money" in the world and 1% of that money is in bitcoin, and there are 12 million bitcoins in existance, that would make a bitcoin 'worth' $41,666.67 in the physical world.
Is that a correct approach to identifying its value if I wanted to convert to/from dollars? Or, am I missing something?