If Bitcoin was a stock,

[Luno]

It would be the time where the company would consider debasing  to get in more small time investors.

That is, of course not possible with Bitcoin. Also in a currency it's equilant to inflation.

But let's consider that everybodys Bitcoin holdings was multiplied with 10 and the start price was set to $2.86. This would make room for a new wave of buying.

As it is now, Bitcoin dont only need more investors but also investors willing to spend more $ on their first time purchase. I know that we have decimals enough to just accomodate a higher price but first time buyers will feel that they get less for their money and their comparable to price. I  the amount of new Dollars flowing into Bitcoin is constant or increases less than the price, it translates into fewer Bitcoins bought as the price rises and that looks like less interest in Bitcoin.

Maybe it's not a problem at all and the big buyers are there in hiding? An announcement that BIG XXX is about to throw them self at Bitcoin, would be nice.

We have had a large amount of good business news, but we need figures; SatoshiDice made a lot of money the last six months and others too, but I need to see some market analysis soon. Someone did that last year and it looked good but that was last year!!

Whats your input to this plea?

[camolist]

If someone wanted to buy $500 in bitcoins what's it matter if they get ten times as many (defaced) or the current? Either way it's the same $500 purchase

[Luno]

True, It does'nt matter to the investor, as it's the percent wise increase the investor profits from, However if the average guy buys $500 worth, only half the amount of Bitcoin is bought, compared to two months ago.

If we have an increase in the number of buyers less than the increase in price, volume goes down and less Bitcoins can to be sold.

Thats what we are seeing now I think. There has to come big buyers in from the side line, once in a while, to keep the exponential growth in Dollar value of Bitcoin.

For the purists, thats something the market takes care of by itself with a correction. It's instant devaluation to let the buyers catch up. Thats why I am not certain that my concern is a real problem, but It's overdue with some substantial numbers on the success of Bitcoin related businesses, not just the "Now accepting" type of articles.

[Piper67]

Two things:

1) Bitcoin is not a stock

2) Ever heard of milli-BTC? Or of micro-BTC?

[ArticMine]

Not all stocks. Here is an argument against stock splits. http://www.gurufocus.com/news/159341/why-warren-buffett-is-against-stock-splits $149200 a share.

Now there is a goal for Bitcoin reaching par with BRK.A

[cbeast]

Not all stocks. Here is an argument against stock splits. http://www.gurufocus.com/news/159341/why-warren-buffett-is-against-stock-splits $149200 a share.

Now there is a goal for Bitcoin reaching par with BRK.A

Thank you. That is my new selling price for my bitcoins.

[Gabi]

Buyers going to buy cheap bitcoins:

[Zangelbert Bingledack]

OP is confused.

[dirksizzlebod]

OP is confused.

I don't think he is. I think you are.

Or, at the very least, you're not seeing this through the eyes of your average joe six pack.


People worry about nominal share price. Its basically proven to have a psychological impact. IF you see shares are .05 cents versus $500, it says something about how well the company has been doing.

I don't worry so much about 25, 35.

I worry about, 100, 1000, 10000.

Will we ever get to the point where satoshis are traded? That is the end game. But, will it happen? Will a bitcoin ever become worth thousands of dollars?

It would be a huge psychological shift. I personally give it well under 50% chance of happening as of now. I think bitcoin has a future as just a parallel method of exchange. it's the perfect online casino chip, and i think at the very least it has a future for that as well as your blackmarket exchange stuff.

[Luno]

Nice replies, but my question was mainly to the "mechanical effects" of a higher price, it simply takes more people "of the same kind" getting into Bitcoin for the price to continue up!

My second argument:

If we see big dumps at this price level, 100K-250K BTC, new investors of similar magnitude have to be there to catch the dumps. We wont have 10000 Newbies act like a single entity to each buy 20 BTC all at once after a dump.

If big investors are missing now, maybe it's time for investment banking in Bitcoin, however there is the "trust" part about lending your Bitcoins to a bank for a return (Pirate, etc.). Maybe the leveraging businesses, who have a need for BTC can fill that function? Bitcoinica had an enourmous effect on price levelling, they were a daytraders nightmare, but at the same time, they had a stabilizing effect on wild movements, they made Bitcoin less risky, untill Zou thong decided to runaway with the money!

So that's the kind of info I would like to hear news about!

[vokain]

"The top is never in sight when the vision is vitiated by hope. The average man sees a stock that nobody wanted at twelve dollars or fourteen dollars a share suddenly advance to thirty—which surely is the top—until it rises to fifty. That is absolutely the end of the rise. Then it goes to sixty; to seventy; to seventy-five. It then becomes a certainty that this stock, which a few weeks ago was selling for less than fifteen, can't go any higher. But it goes to eighty; and to eighty-five. Whereupon the average man, who never thinks of values but of prices, and is not governed in his actions by conditions but by fears, takes the easiest way— he stops thinking that there must be a limit to the advances. That is why those outsiders who are wise enough not to buy at the top make up for it by not taking profits. The big money in booms is always made first by the public—on paper. And it remains on paper."

http://ebooks.gutenberg.us/worldebooklibrary.com/confessstock.htm

[xxjs]

I am sure many people would compare bitcoin to a stock. This will only put a break on bitcoin adaption, which is ok.

If bitcoin is a stock, it surely is not a value stock (that was humor).

I am sure we get all sorts of resistance as the adoption widens, may be we even get a special  anti-bitcoin religion. I would welcome that, good entertainment.