It will have nothing to do with anything, except in making some of the numbers easier for people to understand.
With publicly traded companies, companies often split the stock to bring the price down. For example a stock at $90 per share might do a 4:1 split to drop the price to $22.50 per share. Nobody makes money from a stock split (except whoever is actually handling the split gets fees for the work), but because on most exchanges, investors need to buy stocks in multiples of 100 shares. So, bringing the minimum investment down to $2250 from $9000 makes the stock accessible to smaller investors.
If the value of bitcoin were to climb to $10,000/BTC, many people will find it annoying to have to be typing
BTC0.0001 to buy a candy bar, and people will do the things people do with numbers with lots of zeros before or after the decimal point, and make errors in order of magnitude. For this reason, mBTC or perhaps uBTC will make it more convenient.
Having "normal looking" numbers might help demand somewhat, however, as that will seem less hard to understand for some.
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?