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What in your opinion is the mechanism that puts a floor on the price of bitcoin? Where is that floor, roughly?

• chrisco255 7y ago
  Since BTC's security is dependent on hashing power, and you need money to purchase hashing power and run mining machines, the floor must be high enough that rogue parties cannot easily perform 51% attacks. If the price were to dip to say, $100, then the incentives for miners to mine for new coin would dissipate along with it. It would cost more to mine a coin than a coin sells for on the market. Presumably, network hashing power would drop until profitability was met. Problem is, since all that idle hashing power would exist, there would be a feasible attack vector to take down BTC. I can't venture to guess where that imaginary floor is without some in depth research and analysis, but I would guess it's got to be at least $1K if not higher. And it will continue to rise as the network gets more valuable.
  • solveit 7y ago
    That doesn't mean that BTC can't go to $1, it just means that BTC will die if it does go to $1.
    • chrisco255 7y ago
      Right. OP predicted it would be around whether at $1 or $1M and this is no longer possible. The chain would die if it ever falls below a cheap attack price. But, that's part of the reason holders have a vested interest in holding, and thus available supply on the market is restricted, and the price remains high. Game theory keeps the chain alive.