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for me, anyone who understand Bitcoin as "investment" is a sucker. The value of bitcoin is orthogonal to it's function as digital cash system. If Bitcoin drops
by phaser 9y ago
for me, anyone who understand Bitcoin as "investment" is a sucker. The value of bitcoin is orthogonal to it's function as digital cash system. If Bitcoin drops to 0.001 we can still use it to make transactions in software.
My prediction is that atomic swaps and lightning networks will reinforce the position of Bitcoin as a technology tool and crypto "Investors" will have wasted lots of money and time watching stupid graphs and "market caps" when the price adjusts to the real cost of mining and securing the coins.
- gizmo686 9y agoWhat is the "real" cost of mining? The way Bitcoin is set up, the cost of mining is proportional to the security of the network from a 51% attack. However, there is no force that anchors this cost to the actual level of security needed; so the cost of mining could become arbitrarily high; and all we would have to show for it is an unnecessarily secure network. The block rewards also provide a lower bound for the (Bitcoin denominated) cost of mining and (until they resolve the congestion issues), the auction based transaction fees add to this lower bound.