I question the ability for BTC to drop below the average price to mine it. If it does drop below that price for a sustained period, I question it's ability to survive.
I question the ability for BTC to drop below the average price to mine it. If it does drop below that price for a sustained period, I question it's ability to survive.
Imho It will decimate the ineffective miners, for sure, decreasing decentralization too. So total mining hashrate will get smaller, followed by the difficulty decrease as a result, ultimately increasing mining rewards for the miners who survived the squeeze. Ecosystem balanced again.
Satoshi Nakamoto:
"It's the same situation as gold and gold mining. The marginal cost of gold mining tends to stay near the price of gold. Gold mining is a waste, but that waste is far less than the utility of having gold available as a medium of exchange.
I think the case will be the same for Bitcoin. The utility of the exchanges made possible by Bitcoin will far exceed the cost of electricity used. Therefore, not having Bitcoin would be the net waste."
https://bitcointalk.org/index.php?topic=721.msg8114#msg8114