Post
Topic
Board Economics
Re: Why bitcoins are dropping, and will continue to do so
by
Arrow
on 05/07/2011, 01:20:31 UTC
I must object. Hight supply is a problem if you want the price not to drop (which is implied by OP). A lot of miners decided to join when the price was at $30. They mostly joined for a quick buck, not because of bitcoin and it's features (see troll post above). These people have to throw their mined coins to the market, to recoup their investment and pay utility bills.

But people are continuing to mine, the network hasn't stopped running because a few decided to stop.  Even after the cap is hit, transaction fees will get people to keep mining.