In a reply to a post I made before, franky1 mentioned about "mining cost" and that got me curious. So lately, I've been reading some articles about mining and how it affects the price of bitcoin. Before I continue with the topic, know that I am not a miner, if it's not obvious yet, and I don't completely understand how bitcoin mining works. If I say something inaccurate, please point it out.

Here's what I understand for now:

Miners set the mining cost as a "base price" for Bitcoin. The mining cost is also known as the cost required to produce bitcoin and it basically consists of hardware cost + electricity. If we are going to compare this to a private manufacturing company, they also have what they call as "manufacturing cost", which consists of materials + labor + overhead, for every product they produce. A private company would never allow the price of the product go below its manufacturing cost and, I think, the same can also be said to miners. Collectively, they will never allow the price go below the mining cost.

If miners can set a base price or better understood as "bottom" by some at a particular period, how do you think this affects the reputation of Bitcoin as an investment asset? I've always believed that nobody completely controls the price but it can be swayed up or down by different parties based on good or bad news and rumors.



P.S.

If you notice, I did not discuss the mining technical details like hash rates and difficulty since I don't completely understand it yet as I said before. If you want to discuss it in the comments, feel free to do so.