Mike Burr - log

[BT®] Unit size matters

It used to strike me as arbitrary that people would compare the unit of currency's absolute value in dollars. For example X is $3 per coin and Y is $8 per coin. Ergo, Y is better.

I wonder if they're serious: "Dude, BTC is $10k and ETH is only $2k!"

I don't know how many people there are out there that literally think that.

But, just as round, human numbers (in the reference currency) like "$1,000" seem to act as "attractors" or speedbumps (e.g. "sellwalls"), so also can the absolute value of a "coin" matter.

Just as you might have a sell order for $1,000, so too are many, many people working extra hard to get "one Bitcoin" and may let off the gas ever so slightly once that goal is achieved. That has a price pressure. It's not the same as a sellwall, but it's ...there.

My 2 ETH

- 1 toast