Still not clear on how Snapchat could be worth $3 billion? Perhaps this video can shed some light on why the industry thinks so.

It doesn’t captivate our guests quite as much as bitcoin, but Snapchat keeps coming up in PandoMonthly conversations. The most recent was with Twitter CEO Dick Costolo where we talked about how he sees the company’s value shaking out — and whether something private and ephemeral is fundamentally orthogonal to Twitter’s public/conversational/real-time raison d’etre.

Given an opportunity to be a hater, Costolo instead was an admirer. He described why he was so impressed with Snapchat and why it’d be a “generally bad idea to underestimate [things like it.]“

We’ve gathered his comments here along with the thoughts of Snapchat investor Bill Gurley and non-investor but all around Internet sage Fred Wilson. As a bonus, Mark Suster weighs in on what Snapchat means for the LA ecosystem. Will it be a Facebook or just another MySpace?