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Title: Effect of price drop on Bitcoin companies? Post by: BTCThousandaire on July 04, 2013, 06:48:41 PM What Bitcoin price do you think companies mining, exchanging, or accepting Bitcoin will start to shut down or stop dealing with Bitcoin. I don't mind Bitcoin going down in the short-term, but I have investments in other companies, so as price drops the risk there may be going up. I think $25 may be too low for some companies, but on the other hand maybe they are prepared and will not be affected. What do you guys think?
Title: Re: Effect of price drop on Bitcoin companies? Post by: Kazu on July 04, 2013, 07:39:05 PM I dont think most businesses were affected as it works like the inflation. They essentially get to sell their products for more, unless they are holding them as an investment in which case they are speculating just like anyone else. I guess some of the bitcoin-financials (not actual merchants) would be affected, but I don't feel very sorry for them. They already make tons of money, and probably have the knowledge to hedge out anyway.
Title: Re: Effect of price drop on Bitcoin companies? Post by: Melbustus on July 04, 2013, 07:47:15 PM Most of the bitcoin related businesses that exist today were started when bitcoin traded under $10. They're viable across a wide range of exchange rates.
Title: Re: Effect of price drop on Bitcoin companies? Post by: BTCThousandaire on July 04, 2013, 09:41:52 PM The mining companies may have the most trouble, since as price drops, sales will drop. So the question is what price is break even for the various mining hardware based on Bitcoin per Joule.
Title: Re: Effect of price drop on Bitcoin companies? Post by: BTCThousandaire on July 04, 2013, 09:58:17 PM I just did a calculation for 5GH/s, 0.15 USD/kWh, 30 W, at this difficulty, and the break even on just electricity is $1 per bitcoin. So I suppose there is very low risk of dropping sales of ASICs for quite some time.
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