On the other hand, the good news is that if bitcoin price ever falls into the quagmire of $2-$4 again, only about 500k dollars is required to salvage it, and that's definitely not a lot.
And I don't think it is possible any longer. If internet infrastructure stays intact, we will never see $2 again. To prove this, I'll be ready to buy out any amount of coins at $5 per one, and I'm sure I'll have to wait in line.
Agreed, if we see $2 again its a glitch or a market or a buyers opportunity of a life time, one that would have an extremely short shelf life.
It would be interesting to see what happened if say satoshi dumped his supposed 1 million btc on mtgox. In the shot term I believe The price drop significantly but stabilize, because bitcoin is useful. There would of course be a lot of hurt investors but we feel the economy would stabilize and then recover to an even stronger position thanks to a more even distribution of bitcoins per user.