Bitcoin miners are quite wealthy. Show me a poor person who can spend thousands of dollars on computer hardware to mine bitcoins. *crickets*
If anyone is living pay cheque to pay cheque while mining bitcoins, they really need to have a serious look at their finances.
The average bitcoin miner is living hand to mouth? Really? REALLY?
Fact is, most everyone educated enough to analyze bitcoins and enough disposable income join the community is not hurting for cash. A few tens, hundreds, thousands or even tens of thousands of dollars plus or minus a month is likely undetectable noise to most bitcoin enthusiasts.
We're far more likely driven by ego, entertainment value, etc etc than a $40 power bill. Which for me, at least, does not come on the 1st of the month.
I never said that anyone involved was living paycheck to paycheck and you seem to be missing the main thrust of my analysis, the original dive was spurred by people getting out of BTC for real-world expenses. This is what spurred on a panic sell-off. When moving a $1000 USD in or out can actually, and noticeably move the market price, then when collectively all the bitcoin miners pull out their $5 million USD power bill, it messes with the market, big time. Even if only 1% thought "hmm... I wonder if I could pay my power bill with all these silly bitcoins I've been mining" That's still half the current market depth. I'm using good old fashion micro-economics to examine what's going on.
) knows where the bottom is, judging by your logic everybody would start buying once the price moves somewhat up, creating an avalanche effect (rally).
