If prices continue to slide, let's say hypothetically to $250, I believe at that point large farms would shut down as AC costs would exceed mining proceeds.

This is in fact a very real possibility.

In addition, mining profitability is at best 20% ish for those buying best price/performance hardware. One or two more difficulty changes of 15% or more will make mining a lose lose scenario.

Miner Manufacturers have the edge because the ASICs they produce cost them far less than what they sell to consumers/miners.

So if price stays flat and difficulty goes up 30% - Small Miners and Farms will start shutting down.

If price tanks even manufacturers will not be able to mine for profit.

Both scenarios above will result in a drawback of difficulty in mining. But people will also stop buying mining hardware. This will put manufacturers in a tough position, holding tons of inventory, unable to sell. Now couple this with a drop in price in BTC and I smell disaster. Their bankers will come calling for sure.

A bit crazy, but in my opinion we may see some sort of "shakedown" by the big players. The market has to find an equilibrium, where mining is at least produces more fiat value than operating costs (hardware aside), and manufacturers can make profit making their products.

Something will happen soon. There is no way around it.

Strato