Except this isn't true. In 2015 you likely wouldn't need to spend more than $5/month for a cheap VPS
OK, you're right. I was trying to illustrate a point. My service provider did actually charge me $30 a month for an internet connection and at the time that's how I would have mined with a dedicated co-located miner.
The point that was being made was that:
• hosting cost does not increase with Dash price
• mining costs do
Therefore as price rises, those two profit margins get out of sync.
The more they get out of sync, the less capital value Dash is able to absorb into the chain (because, proportionately, more of it is going towards holder profits).
Therefore it has a glass ceiling that fully mined coins don't and when it reaches that glass ceiling, (where the disparity between the two margins is stretched beyond the point that the market wants to start taking profits from one of them) it crashes back down to an equilibrium level.
That "glass ceiling" gets ever harder the more masternodes we have.
The way to remove the glass ceiling and allow the price to rise sustainably according to demand is to set the margins at reasonable parity. Obviously that is not an exact science because the commercial profit of a masternode is set by the free market whereas the reward ratio is set by the protocol. But we have such a massive room for manoeuvre on this that we could instantly increase the mined proportion of the supply by about 30% and still cover masternode hosting costs by multiples.