Imagine it would cost 10$ to produce 10$ (imagine all money would have to be real paper bills and those would be really expensive to make). Certainly this does

Imagine it would cost 10$ to produce 10$ (imagine all money would have to be real paper bills and those would be really expensive to make). Certainly this does not work - all economic activity would be spent to make the money bills, and no activity was done to produce food or build the power plants that are busy producing energy to calculate the next "coin". So the price of Bitcoin may be related to mining costs in the short term, as miners quit when it gets too expensive. Ultimately the price would have to be much lower to be practical, or higher if it turns out Bitcoin becomes highly useful for something. Or Bitcoin takes over the world and replaces all other currencies - then the 21 million Bitcoins would equal the entire human wealth - if you believe this then you should buy right now.