What should the price of BTC actually be? Is there some tangible metric that we can identify as the basis of Bitcoin's value? It seems to me that the only tangible value of bitcoin is it's security- the fact that it can't easily be counterfeited. That's what makes it a reliable ledger of accountability. The security of bitcoin is directly tied to the hash rate of the Bitcoin network so that's what should determine the price, very precisely.
We can set the price to any hash rate but, in order to maximize the adoption of this pricing scheme, we need to set a price that is close to the current market price. According to blockchain.com, the last recorded hash rate was 90M TH/s and before that it was 125M TH/s. We can generalize it to 100M TH/s. The price has also moved around $10k so I'll use that.
(100M TH/s)/($10k) = 10k TH/s - and this becomes our standard unit. Now the price is directly tied to the hash rate.
What's the price of BTC? Simple- (current hash rate divided by 10k TH/s) * $1.
...
at 1M TH/s, 1 BTC = $100
at 10M TH/s, 1 BTC = $1k
at 100M TH/s, 1 BTC = $10k
at 1B TH/s, 1 BTC = $100k
...
Not only is this a fair and stable pricing scheme, it encourages mining, which increases the hash rate, which increases the price. And that's what we want because it will maximize security.
No its not related. Bitcoin cannot control things outside Bitcoin, certainly not USD, you cannot code anything like that, and you cannot enforce it either it would be another pegging system. Pegging is bad, it depends on people. Bitcoin is about being trust-less, not trust someone will keep his/her promise...
The best price bitcoin ever has, is whatever the market decides. The beauty is in the freedom it fluctuates within, with nothing outside attempting to force any artificial price only to have the thing blow up later.
The only good intervention, is no intervention. You have to change your mindset, fluctuation is good, learn to live with it, stop trying to oppose it, embrace it and love the freedom it entails. It means it will never blow up, like "stablecoins" and fiats do.
Oh but you have never lived a crash of your fiat in your lifetime, the people in charge never let it blow up... Doesn't mean it can't. This is the fundamental problem, trust in those people, trust they would never do what things like Maduro and Mugabe and several many other idiots in history did, back to the
ancient Romans and Greeks...Bitcoin: In Code We Trust.
Are you worried about something? That mining will decline? Cast your doubts aside, mining WILL decline, its designed like that. Find another source of income now that you know it.
Also you are wrong thinking your money becomes less secure with less mining, the less mining is a result of it becoming too expensive, which is what makes the thing secure to attacks in the first place, that it is too expensive to pull out a 51% attack, and that is not changing. It is the very reason, in fact, that mining will decline, because its too expensive to keep it in such large scale anymore.
Its not on/off either, mining will slowly diminish at the same time the asics are so efficient the hashrate is the highest ever, even with reducing mining, and large operations closing, and the equipment to do it so expensive. And by the time most commercial miners are gone, those that remain are plenty (efficient) enough to keep things secure.
So you are indeed, wrong.
