Quote from: miernik on July 04, 2013, 12:55:44 PM

No, its the other way around: in the long term, Bitcoin "production cost" adjusts to the Bitcoin price. I.e. miners buy more hashpower until the difficulty is so high that its hardly profitable to mine.

Anyway I hope for the Bitcoin exchange rates to become more and more stable as the amount of new Bitcoins mined in a give amount of time is becoming a smaller and smaller percentage of the total number of Bitcoins in existence, so miners who are just in it for short-term profit and sell to fiat any mined Bitcoins will have a diminishing influence on the whole Bitcoin economy. After the next block reward halving things might already start looking better.

Wondering to what extent the recent dumps on the market where done by Avalon ASIC miners cashing to fiat as they ran out of patience of Bitcoin rates going up, and they are still thinking in terms of fiat as of value, instead of just keeping the mined BTC for the long term. Impatience and fear - thats the reason price is going down. Once the impatient and scared will run out of Bitcoins, the price will start to go up again.

You're somewhat right miernik but I think the price won't go lower than production cost... so price bounces in production cost and then production cost goes as high as the price goes.