>> 1. Most people have already invested in the hardware and are therefore okay mining at a loss with the hope that the Bitcoin price will rise again in the futu

>> 1. Most people have already invested in the hardware and are therefore okay mining at a loss with the hope that the Bitcoin price will rise again in the future. It doesn't make sense to mine at a loss, as in that case they can buy more bitcoins at market price, rather than mining them.