Bank of America (BAC) common share price and Bitcoin price convergence

[aigeezer]

As I write this (December 20, 2011), the Bitcoin price is surging upwards to about US$4.

Meanwhile, the Bank of America (BAC) common share price has been drifting downwards.
It dipped below US$5 yesterday for the first time.

Some analysts claim there will be a massive institutional selloff of BAC stock because
many institutions are not allowed to hold "junk stocks" valued at less than US$5.

Time will tell.

While the two trends may be completely unrelated, I find the symbolism fascinating.

So... whaddya think?... "us or them"?     

[1715249607]

1715249607

[old_engineer]

A big difference is that BAC has 10 billion shares outstanding; bitcoin, about 8 million, as we all know.

About two months ago, I was talking with a client that buys stock in companies after they've been devalued by bad news, including both TEPCO (owners of Fukushima reactor) and BAC.  I told him BAC was going down down down, and explained bitcoin.  He wasn't interested, and since then, I'm now up 80% and he's down 30%.  He (and bitcoin) are making me look good.

[StewartJ]

Could you imagine Bitcoins using the Bank of America model of trying to charge outrageous ATM fees for every transaction?

What a contrast between 2 financial models.

And Yes, this is an interesting convergence, Bitcoins value up over $4 and BAC shares down to junk below $5.

[aigeezer]

Forgive this bump, please, but the situation remains interesting.

Within hours of my first posting the poll on December 20 2011, Bank of America share prices started climbing sharply.
Looking now it's at $8.27, up dramatically from about $5.00 in late December.
Of course, Bitcoin is up dramatically since then also.

Here, we speculate about a "manipulator".

In dirtspace the bank shares just climb "for no particular reason".