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Wouldn't it be capped by the cost (+usual profit)? There is nothing about the cost of production that prevents the value from falling below the cost and all the way to zero.
Why not? It's not hard to calculate the cost of production (cost of hardware and electricity) for bitcoins. That cost changes with time, but that's normal for most everything.
That probably would be a better term. I should add that I haven't been educated much in economics, and if "anchor" is economic jargon, I don't know it. I was just going by the normal use of the term and the context to guess what the OP was trying to say. Also, pointing out that it's only anchored from above pokes a hole in the OP's comment, but since someone else already addressed that I didn't bother.
Bitcoins are produced at a rate that halves every two years. It doesn't matter how... (read more)