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> What sets Bitcoin apart from all other crypto currencies is its extremely high hash rate. This means that a Bitcoin is orders of magnitude more “precious” tha
by rlpb 9y ago
> What sets Bitcoin apart from all other crypto currencies is its extremely high hash rate. This means that a Bitcoin is orders of magnitude more “precious” than any other crypto coin presently in existence.
Why? What evidence do you have that a high hash rate causes high value?
I would argue that the hash rate follows value, rather than the other way round. A low hash rate and high value makes mining is more profitable, which results in more miners joining, raising the hash rate. Thus the hash rate adjusts to reach an equilibrium against the BTC to electricity exchange rate.
- gtrubetskoy 9y ago> I would argue that the hash rate follows value, rather than the other way round. I do actually say that in the article, in almost those same words. My (perhaps not very well articulated) point was that regardless of what follows what, the hash rate, or the amount of work, in terms of energy expended is by far greatest of all other crypto coins, especially considering the whole blockchain going back to beginning, which means to 51% attack Bitcoin is harder than anything else right now. For this reason, if I wanted to park my money in a crypto currency, I'd probably choose Bitcoin as the safest, hardest reinforced as far as proof-of-work goes. Of course there are other factors at play here, but it seems like amount of proof-of-work, or the difficulty, is an important factor in a crypto currency preciousness.