Topic: Can a Crypto stock split? (Read 362 times)
Flip your client to price in mBits or something.
It doesn't have to. All people have to do is mutually agree to change the nomenclature and away we go.
Getting them all to agree to it all at once is going to be impossible of course and it should've been done a long, long time ago.
Getting them all to agree to it all at once is going to be impossible of course and it should've been done a long, long time ago.
Can Bitcoin split from $3000 to $30?
Since you're discussing a stock split in terms of crypto, I believe the answer is no.
However, when I was first introduced to bitcoin, I was confused about the difference between a fork and a split. Forks introduce completely new currencies into the market; they don't actually split up the original cryptocurrency. They're much more of a spin-off than a split.
A stock split is a corporate decision taken by the company following approval by its board to split its share. The decision to split shares could be based on a plethora of reasons.
The company could want to make its shares affordable to retail investors. This is especially true in case of highly priced shares such as Amazon.com, Inc.
AMZN 1.2%
, Alphabet Inc
GOOG 0.06%
GOOGL 0.17%
, Chipotle Mexican Grill, Inc.
CMG 3.36%
, etc. A split increases liquidity, which in turn brings in more buyers and sellers, helping a stock realize its true value.
Some companies offer other reasons as well. Kroger Co
KR 0.93%
announced a stock split in 2015, for the first time in 16 years. The company opined that through the split, it hoped to make its stock more affordable to its employees.
Amid all these reasons is one constant: the valuation of shares. Although stock splits increase the number of outstanding shares in the market, the market capitalization of the company pre- and post-split remains the same.
The company could want to make its shares affordable to retail investors. This is especially true in case of highly priced shares such as Amazon.com, Inc.
AMZN 1.2%
, Alphabet Inc
GOOG 0.06%
GOOGL 0.17%
, Chipotle Mexican Grill, Inc.
CMG 3.36%
, etc. A split increases liquidity, which in turn brings in more buyers and sellers, helping a stock realize its true value.
Some companies offer other reasons as well. Kroger Co
KR 0.93%
announced a stock split in 2015, for the first time in 16 years. The company opined that through the split, it hoped to make its stock more affordable to its employees.
Amid all these reasons is one constant: the valuation of shares. Although stock splits increase the number of outstanding shares in the market, the market capitalization of the company pre- and post-split remains the same.
No, because it would require multiplying coin balances. However, because coins are easily indivisible, a different unit (such as 1 mBTC) could be used, and its price would be around $2. However, it would only be a matter of convention/naming.
Can Bitcoin split from $3000 to $30?
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