Proof of work discovery solved those issues, because there is not only supply and demand, there also is the network security
a- If people starts to buy other Bitcoin competitors, it would make the Bitcoin network less secure
b- Everybody wants the Bitcoin network to be the most secure, the buyers and the sellers
c- Then if the Bitcoin network becomes less secure, then all parties, buyers and sellers, are forced to accept a higher Bitcoin price to make the network more secure, and this price increase discourages/block people from investing in competitors
Thanks for explaining your logic. I don't agree with it. I believe you are basing your claim on the fact that an increasing price allows more mining and thus more security. However, the converse is not true -- increased mining does not cause the price to rise.
The security of the Bitcoin block chain (against a 51% attack) depends on the cost of mining. If users are concerned about its security, then they will increase mining in order to raise the security, even perhaps to the extent of mining at a loss. However, as I mentioned above, the price of a Bitcoin does not depend on the cost of mining.
In economic terms, a less secure network would result in
lower demand, which would tend to lower prices.