The hardware working in the bitcoin network is it's capital backing. The more hardware backs it, the more resilient bitcoin is to attacks.
If we valued one bitcoin at $1 million today, we would have a problem, because the hardware required to attack the network would be much cheaper than the potential gains of an attack.
It is not capital backing in that I cannot exchange a bit coin for a computer. Agree it may provide an upper bound on the value of bitcoin, but not a lower bound.
If we valued one bitcoin at $1 million today, we would have a problem, because the hardware required to attack the network would be much cheaper than the potential gains of an attack.