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Proof of work demonstrates that a certain amount of work was done, which cost a certain amount of money to produce. It's burning money to get currency, nothing
by ikeboy 10y ago
Proof of work demonstrates that a certain amount of work was done, which cost a certain amount of money to produce. It's burning money to get currency, nothing more.
- Spivak 10y agoIt also helps facilitate transactions, ensures the security and integrity of a network of mutually distrustful agents, and establishes a price floor for the currency loosely based on the price of electricity.
- ikeboy 10y ago"establishes a price floor for the currency loosely based on the price of electricity." You have causality backwards: the difficult changes based on the price of the currency. If the price goes down, people will simply mine less.