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Bitcoin is capable of storing value because its features allow value to be exchanged. Of course that doesn't endow it with value. But we endow it with value bec
by hackinthebochs 9y ago
Bitcoin is capable of storing value because its features allow value to be exchanged. Of course that doesn't endow it with value. But we endow it with value because we inherently value a decentralized method for the exchange of value. Bitcoin's existence bootstraps its value.
>Why is it good that bitcoin is so inefficient?
It helps increase the confidence in bitcoin. We value the energy used to create bitcoins so that helps us recognize the value of the coins. It's no different than rare stones being valuable because of the work expended to find them.
- deleted 9y ago[deleted]
- nosuchthing 9y agoBitcoins are not valuable because it requires extreme amounts of electricity to sustain each transaction. Most people are unaware of that detail. at the time of Malmo's piece, he calculated that a single bitcoin transaction requires as much electricity as the daily consumption of 1.6 American households, and that number has increased since then. "Adopting Bitcoin as a major currency anytime in the next few decades," he wrote, "would just exacerbate anthropogenic climate change by needlessly increasing electricity consumption until it's too late." Other distributed ledger networks have designs which offer the same service to users, and in many cases are vastly more efficient in terms of electrical usage and actual speed of transactions. Kidney stones are rare and require lots of work expended to find them. Don't confuse those precursors with establishing value. https://motherboard.vice.com/en_us/article/aek3za/bitcoin-could-consume-as-much-electricity-as-denmark-by-2020 https://motherboard.vice.com/en_us/article/aek3za/bitcoin-co...