I am suggesting the State (or those corrupt who control it) can charge the cost of mining to the collective (think the Three Gorges Dam that wrecked environmental devastation downstream, upstream and derivative effects all over China). I have made this point numerous times. And apparently (after everyone said I was crazy), it came true in China and if true was a factor that enabled China to capture an estimated 67% of the mining and 51% attack Bitcoin. Documentation of these statements is in my vaporcoin thread.
If the profit from shorting is greater than the reward, then it doesn't cost you anything. The free mining cost just makes it more likely you can sustain it long enough to reap your reward. How do we know the Chinese won't milk the investors while the block reward is high (mining at near $0 cost charging it the cost to the collective) and then also profit by shorting it all the way down from $1000.
We are bunch of naive geeks who are being reamed (mined) by savvy traders and strategists. These are no different conceptually than Rothschild's and Rockefeller's methods of yore. The players and technological field change, the game remains the same. (Yeah I am crazy conspiracy theorist whose analysis is always wrong)
Edit: haven't you been slightly suspicious of why the MSM publicized Bitcoin so much. That doesn't happen without the approval the global elite.
Thats not how governments work, for the moment at least.
Governments could already just do a covert operation on any bank or financial institute and steal their money if they want. Or publiccly seize all their assets or nationalize it.
They can already do that, on far bigger sums than bitcoin, so it doesnt even make sense. But they are not doing it, because it doesnt make sense, they just use the classical regulation and taxation tools.
I dont think bitcoin will get on their radar while it's below 100 billion $, after it hits that threshhold, we could see some sort of taxation and regulation being pushed.