Comment by hwy50

Help me here. All databases are negative cashflow. They only 'cost', don't generate 'revenue' by themselves. This is true of ACH mechanism to transfer funds from one bank account to another. Does that make USD negative cashflow? Does the cost of maintaining this ACH system affect the price of USD v/s GBP?

The value provided by a database such as BTC is that it provides a record of 'who owns what at what point of time in history'. I can argue separately about why the 'immutability' of this database itself is a value created by Bitcoin, for which holders can be willing to pay premium for.

Miners earn profit if Operating Costs > $ value of (Transaction Fees + BTC mined). Over a long enough timeline, Fees + BTC mined will ~~ operating costs of the rig. If not, more miners will continue to see economic opportunity, and keep joining the miner pool till that equation is balanced.

The other source of BTC value going up need not be more demand for it, let's say over next 12 months. The ~6% inflation could show up there too.

What am I missing?