Yes, if you go by just the amount of trading done right now, and a PE of 10 you would get a price of 0.0000086 (compare to the current price of about 0.00086, that is a difference of two orders of magnitude). But the system which MPEx has set up is secure and useful, so it is reasonable to expect the amount of trade to go up in the future.
Edit: My calculation: 36010 (monthly volume) * 12 (months) * 0.002 (trading fee) * 10 (PE estimate) / 1 billion shares
Alternatively, and perhaps much more rationally, 0.00086 (share price) / 36010 (monthly volume) / 12 (months) / 0.002 (trading fee) * 1 billion shares would yield a PE of 995, which seems to be what a well run, trusted
Bitcoin business trades for.
One can't ignore the market indefinitely. For the past two years MPEx has been practically without exception the largest venture in Bitcoin. Others have come and gone, be it Satoshi Dice, Asicminer or what have you. At times of crisis the entire
rest of the Bitcoin economy collapsed into nothingness, leaving MPEx to stand in excess of the
sum of everything else. At times of (irrational) exuberance drastically inflated market caps on the basis of narrow available "investment" Bitcoin made competition seem possible, in aggregate, but still left MPEx the largest one Bitcoin business (with week or month-long interruptions here and there, sure).
The fact remains that Bitcoin isn't here to adapt to the needs, desires, or expectations of the fiat world. Bitcoin is here to force --with its consent, no matter how enthusiastic, or against its will, no matter how empathic-- the conformation of the fiat world. Consequently...1k PE is just what PEs are in Bitcoin, if the company doesn't suck. If it does suck...well...a fraction thereof.
This isn't nearly as unreasonable as it seems once you realize that Bitcoin, unlike fiats, is noninflationary. In 1965 a gallon of gas cost $0.31, today almost fifty years later it costs ten times as much. That's roughly 20% each year (0.2 * 50 = 10) and if you compound it yearly this comes to a whooping 9100x. Meanwhile in the same interval Berkshire Hathaway went from $14.86 per share to $182,175, which is roughly 12,259x. Not that much better (and for that matter if you compound quarterly rather than yearly, the gasoline figure is 17,292 rather than 9100). In this perspective, Berkshire has barely kept up with inflation (a little above if you compound yearly, a little below if you compound quarterly). What is the real (ie, Bitcoin-equivalent) PE of Berkshire? About 1000x, at least as degree of magnitude. Once you wash away all accounting inflation caused by fiat monetary inflation even the best of fiat companies appears quite MPEx-ish. And this as to the exceptional, the outstanding, the one-of-a-kind. God help you should you consider the merely competent, such as for instance Buffett's competitors Burlington Industries (actually,
he spells it out himself).
