Is this reasoning correct ?
After all bitcoin was designed as digital cash with the coins circulating from address to address which is also part of the security model as i understand it because it makes it even more pointless to search for hash collision on a public address as the coins are always moving and are not supposed to sit on an address for long period but move between single use address which also increase anonymity.
If this is correct it mean some kind of "silver thursday" at some point when hoarders make the price so high nobody really want to buy it anymore and it ends up loosing all value on the market.
Anyway bitcoin as a currency can function at any market price as long as it not null because it still needs to be mined so the price cant go to zero but it can function at 1$ if thats the global economic value as a commodity.
Bitcoin can be one of two things effectively, when it had low adoption levels it worked well as a currency because the market was so liquid and people were not intent on hoarding it. It's primary usage at that point was still open as a tool to exchange value, as the volatility was more stable and we saw very companies opening up to accept it slowly. As it has gotten much more popular it has morphed, or tipped the scales towards, becoming simply a commodity. Like gold, people are hoping that it will hold its value and slowly increase over time. It still has a very useful purpose of being a decentralized unit of exchange that is not subject to unnecessarily high or arbitrary fees, but that only works at higher amounts. It has much less purpose, due to fees and time taken to validate, as a more instantaneous exchange of value.