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That's not a price floor though. A price floor would be some reason Bitcoin wouldn't go below a specific price. If Bitcoin falls below the price you can profita
by ALittleLight 5y ago
That's not a price floor though. A price floor would be some reason Bitcoin wouldn't go below a specific price. If Bitcoin falls below the price you can profitably mine it that means people will stop mining it, it doesn't mean that anyone will buy more Bitcoin and support the price.
- megameter 5y agoThe actual supply coming into the market remains the same while the mining difficulty shifts according to network hashrate(determined by the time between new blocks), hence assuming demand for Bitcoin is static, there is an equilibration mechanism creating a break-even price floor. Bitcoin's price appreciation has demonstrated that demand can be sustained through multiple market cycles, and nothing in particular has changed that assessment. Bigger worries for Bitcoiners stem from centralization of hash power, and whether transaction fees alone will sustain the network as it exits the inflationary period.