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There's something of a practical floor on price at the cost of the electricity to mine a coin times the lowest rate of electricity available at the moment. (Som
by jaggederest 9y ago
There's something of a practical floor on price at the cost of the electricity to mine a coin times the lowest rate of electricity available at the moment. (Somewhere in the realm of $500 AFAIK)
Now, since the difficulty changes over time I could imagine that not being as high as people think (e.g. if mining companies abandon bitcoin for other currencies), but there is a real world equivalent to book value.
- vasilipupkin 9y agothat argument makes no sense to me personally. For example, if I rented a warehouse, filled up that warehouse with iphones and hired workers to systematically destroy those iphones with hammers, there would be a cost to that activity. but it wouldn't a price floor on anything. The thing itself has to have value, the cost of the thing is not a price floor
- fleitz 9y agoYou should make a blockchain based on smashing an iPhone taking a picture of it and then hashing the picture. You could probably make a lot of money and drive up the value of old iPhones. Revolutionary new proof of work algorithm. Call it Instachain or something.
- vasilipupkin 9y agoOn a completely serious note, I am happy to pay 1 or more developers to help me create a bitcoin fork. why not?