Re: Is bitcoin price sustainable with higher & higher electricity costs for mining?
Don't forget prisons and police as part of the cost.
I actually don't fear the power cost/difficulty = bust .
I do fear lack of demand due to public's perceptions of BTC = low price = bust out.
Police and prisons exist for a variety of reason. Direct cash theft is probably small potato's compared to drugs, assault, and homicide. So far I have seen nothing to suggest that Bitcoin eliminates financial crimes in general. It will certainly change the nature of some, but we've seen Ponzi schemes operate just fine within the Bitcoin realm.
In terms of acceptance, right now Bitcoin is a "solution in search of a problem". I have yet to see a compelling reason to use Bitcoin instead of USD for anything so far (yes I am a USA resident). The very few times I've purchased something with BTC, it was mining related, and required by the Seller. Just my $.02 on Bitcoin acceptance.
Yeah this is what holds it back. Okay you can hedge inflation vs the dollar or another currency. You can now trade in the stock market . It is a BTC backed stock. So for smart money guys you made it accessible. But when my wife says to me hey Phil put a few BTC on my iphone or android phone I am going to Target they are running a BTC based sale > then prices for BTC will get better.
At least in my opinion. And I have made a lot of bad guesses.
My newest really bad guess was why does anyone need an iPad the day it came out I predicted it would be a bust. Too big and not enough processing power. After that truly poor guess I am less inclined to have an opinion in print on the net.
