> If there's enough enthusiasts using spare disks (...) then that means Filecoin hosting will be available cheaper than cloud hosts
Ok. Agreed.
> If all that capacity gets used up, then supply and demand will cause the price to go up until more people add capacity.
Agreed.
> If the price hits the price of cloud hosts, then people will just run tons of Filecoin nodes on cloud hosts.
Not necessarily. I can just buy more disks and run locally, whether for hosting my data or to sell the space on the network, which brings the price back to people-selling-spare-disk-space-for-cheap level.
> Then anyone that can undercut the cloud hosts will be free to run their own Filecoin nodes, and the price will be pushed down as people do this.
Yeah, but that is kind of my point. Everyone will undercut each other until the price hits the bottom. The equilibrium will be at most the commodity price.
Ok. Agreed.
> If all that capacity gets used up, then supply and demand will cause the price to go up until more people add capacity.
Agreed.
> If the price hits the price of cloud hosts, then people will just run tons of Filecoin nodes on cloud hosts.
Not necessarily. I can just buy more disks and run locally, whether for hosting my data or to sell the space on the network, which brings the price back to people-selling-spare-disk-space-for-cheap level.
> Then anyone that can undercut the cloud hosts will be free to run their own Filecoin nodes, and the price will be pushed down as people do this.
Yeah, but that is kind of my point. Everyone will undercut each other until the price hits the bottom. The equilibrium will be at most the commodity price.