The more people that use dollars doesn't make it more expensive (although the demand for loans might raise interest rates).
Do not assume that if bitcoin gains widespread appeal its price will automatically go up. But there is a limited supply you say and demand is unbounded potentially.
Ok fine, but the mechanism by which the price will increase will be due to the difficulty increasing, causing the cost of bitcoin mining to increase. With a block reward of 25, an average cost of electricity of 13.5 cents per kWh and an average mining hardware energy efficiency of 0.75 J/GH, you get a breakeven price of $1,000 when the mining difficulty is around 210 billion.
Your first and second argument are actually countering each another . First argument is that you are denying that demands will actually helps
BTC to reach a higher price while on the second argument you are saying that the
BTC difficulty will be the parameter for the increasing price
Now, how will the difficulty increase? By having alot more miners which means that the demands for BTC is increasing otherwise we will never have more miners . So demands are the key for this, also I would say that your post is quite impressive to have count the breakeven price for it at the 210 billion difficulty but i'd say it rather baseless and unlogical.
You forgot to put a rational thought in your argument because at the current rate of ~$240, I dont see any reason for the number of miners to keep on increasing and pump up the difficulty into such high number while they are already losing their chance to breakeven if the current diff is double of the current one
