Quote from: ltc_foundry on December 03, 2013, 06:44:42 PM

I see comments frequently to the effect of "There are many missing coins, the real price should be higher"

Aren't missing coins, by virtue of not circulating or being exchanged, already priced in?

Well first of all, if they are NOT circulating that makes the price HIGHER. If they WERE circulating the price would be LOWER. (due to increased BTC supply)

Are they priced in? Yes and no. Yes because "everyone knows" the risks involved and can invest accordingly and no because for instance the maybe ~1-2 milion bitcoins Satoshi has may never move or may be dumped tomorrow and enter more active circulation.

All you can say is that supply and demand has priced in whatever is in circulation at the present moment.