So for me, the most realistic price drop scenario is something that creates a big increase in supply and decrease in demand at the same time. For MtGox you have

So for me, the most realistic price drop scenario is something that creates a big increase in supply and decrease in demand at the same time. For MtGox you have a crisis that lowers trust in brokers, decreasing demand, and huge hoard of stolen coins going to a criminal that wants to profit, increasing supply. Holders who bought bitcoin for a reason will sell for a reason, and they're heavily incentivized not to do a panic selloff, unless they think bitcoin is dying. I agree bitcoin is inadequate as a currency. (I think ETH is better as a currency, since it sort of has the "tax base" of executing contracts and enshrining the results on the blockchain.) I view it as a store of value. If your wealth is mostly represented as various numbers in various databases (mine is,) then bitcoin is a robust form of integer storage, or at least vulnerable in ways that are uncorrelated with my other wealth storage providers.