The price is tied to difficulty and overall network hashrate.
If network hashrate increases more than difficulty then price will go down.
In which case the price for 1 BTC will be alot higher the day difficulty gets so high that mining is no longer profitable.
I'm not 100% sure if I've gotten the system right though. Can someone prove me wrong?
i don't know how to prove you wrong but difficulty & hash rate represent costs of mining for new coins.
which should not misunderstood as value. especially value of all coins.
the fact that anybody spend meat space money for hardware, electricity and bandwidth
can not be simply interpreted as an equation between costs and exchange rate.
it is a matter of demand and supply at what price level the trade happens.
you can spend bazilions of kuna to buy & operate mining equipment but if no one wants to buy
you either keep the coins or sell at what is offered. no one cares what did you spend on mining
price follows difficulty because of people willing to help mint coins and add power to the hashing
network because they can profit from this activity.
if there would be no influx of new money through exchanges, the price would be still in a 10 cents limbo
i thing that greed is leading, followed by difficulty. price is irrelevant.