Topic: Why switching to mBTC won't increase Bitcoin price. (Read 3538 times)

The change to mBTC won't in itself change the value of Bitcoin.

The belief is that the general public is badly informed (not a bad belief).

As others have mentioned, the general public may think that you can only buy a whole Bitcoin.

You and I know this to not be the case but the general public don't know this so they don't want to plop down $700 for a Bitcoin.

Now, if you denominate things in mBTC, the purchase price now __appears__ to be $0.70.

Nothing has changed, however, the same general public will now feel it's much more affordable and buy up, say, $7 worth. Heck, some might even go as far as $70.

This opens up the market to the less informed people, resulting in more Bitcoins being bought.

Sure, it's not a huge volume but it's going to be some amount (the long tail).

It's this additional fiat flowing in that will increase the Bitcoin exchange rate. By how much is anyone's guess. It all depends on how many people believe that you can only buy whole Bitcoins AND it's the high price that's preventing them from buying.

Hope that explains things for you.

The only way 1 mBTC would sell for $1 is if one whole BTC is *ALREADY* priced insanely high.  So no ... your argument doesn't work.  
We're discussing right now.  When one mBTC is worth $x.xxxxxxx1.  
We are not discussing 100 years from now when an mBTC is priced at $1.00
I want to know how it gets to that point.

Next?

The only way 1 mBTC would sell for $1 is if one whole BTC is *ALREADY* priced insanely high.  So no ... your argument doesn't work. 
We're discussing right now.  When one mBTC is worth $x.xxxxxxx1. 
We are not discussing 100 years from now when an mBTC is priced at $1.00
I want to know how it gets to that point.

Next?

Yes you can, you just need a better keyboard.

I cant do it

The only way 1 mBTC would sell for $1 is if one whole BTC is *ALREADY* priced insanely high.  So no ... your argument doesn't work.  
We're discussing right now.  When one mBTC is worth $x.xxxxxxx1.  
We are not discussing 100 years from now when an mBTC is priced at $1.00
I want to know how it gets to that point.

Next?

Why would it push the price up? Simple. Each mbtc would be sold for $1 and that would push the final btc price much higher.

Can you explain why it doesn't make sense?

Everyone likes to say "wrong" but nobody gives an explanation why its wrong.

I just end up writing the same thing 50 different ways, and not getting a single explanation why its wrong, in response.

The only thing that can push 1 whole bitcoin price up, is a lack of supply and an overabundance of demand.

Why will switching to mBTC, which alerts people to an "infinite" supply of sub-1BTC purchases, going to do a damn thing to push the price of 1 BTC up?

It may ... but it doesn't *have* to.  It can, in fact, provide 100,000 people with the ability to buy divisions of 1 BTC at a 1 BTC price of $650 without the value of 1BTC going up even one penny.

That was the argument I stated, and I fail to see why its false?

The scarcity argument you make doesn't make sense in this case although clearly one of the big draws to btc is that it is limited in nature.

stop making treads with the sole purpose of complaining that BTC is not at $10,000 yet. It will happen eventually, but it's not likely to happen overnight, or this month for that matter. Come back next year or so. Some people are just so impatient these days.

Windows Hold alt and pres 230... in case anyone ever wanted to know

m is standard for milli
µ is standard for micro, but if you cannot type a µ character then u is standard for micro
n is standard for nano

#1 reason for using nBTC is that it will make everyone will feel very rich because they can easily own millions of nBTC!

I have created numerous threads asking people exactly how Bitcoin is supposed to reach the $10,000 mark.  By what method.  Pages of responses all say "We need to switch to mBTC, which will encourage more people to purchase BTC, which will in turn push the price up".  It dawned on me today that switching to mBTC won't necessarily do a thing to increase price of Bitcoin.  In fact it may cause it to go down.

In my understanding, in order for Bitcoin price to go up, there needs to be (1) increased demand and (2) lack of availability, at any given time.  This is why the price shot up when China stepped in.  Purchases were still mostly in whole Bitcoins, everyone was scrambling to get one, and there were daily shortages.

Switching to mBTC will actually act as a psychological multiplier of increased availability.  Psychologically, people no longer "need to buy 1 whole bitcoin".  Therefore instead of 100 people buying 100 Bitcoins, you could very well have 100,000 people buying 1 Bitcoin.  And they could, theoretically all do so, at an unchanging price of $650 per BTC.  Scarcity goes right out the door.  When something is not scarce, there is no competition, and when there is no competition there is no shortage of supply.  When  there is no shortage of supply, there is no increase in price.  

In order for the price of Bitcoin to rise, there has to be a lack of supply.  The only thing I have ever agreed with "revans" about is the scarcity illusion with Bitcion.  Something that is "infinitely" divisible is not scarce.  Only if Bitcoins become (1) scarce (2) in comparison to the number of people who want to buy them at (3) any given period of time, will the price begin to nudge up.  If everyone can get a portion of a bitcoin at $650, there is nothing which will push the price of 1 bitcoin to $10,000.  You would need billions of people scrambling to buy Bitcoin in waves, and not enough people selling, for the price to rise.  

Thoughts?

If you could divide a cake into an infinite number of pieces, do you have more cake?.

mbtc is a compromise to folk that need to feel like they have more of something than they have, what the need to start adding extra layers of confusion onto something that already has the average person confused. If you asked me how many btc I have with - 100 mbtc - 100 microbtc -100 nanobtc I wouldn't have a clue