What’s missing from all of these examples is denomination in Bitcoin, or other cryptocurrency…
At the moment, priced in bitcoin, a Berkshire share costs BC10.73
Here’s a thought experiment for those who are musing about Bitcoin as a medium of account:
Would you agree to sell me a share of Berkshire at the price of 15 bitcoin three years from now?
Measured in bitcoin, I’m willing to buy at a 40% premium, or 11.8%/year.
If not at 15 bitcoin, then at what number would the deal be attractive? 17? 20? Or maybe just 10?
Secondary thought experiment:
What if I could trigger closing of the deal any time of my choosing in the next three years?
Would that make a difference to the decision, and if so, why?
If the unit of exchange is considered a useful unit of account, then the sooner I trigger the better for the counterparty,
so this variant should make them more, not less, willing to do the deal.
To come up with an answer, one rapidly starts considering the volatility and unpredictability of the purchasing power of a coin.
Jim