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Bitcoin affects global welfare in three ways: 1) Positive sum: facilitate buying goods and services 2) Zero sum: move money from later to earlier adopters 3)
by cousin_it 9y ago
Bitcoin affects global welfare in three ways:
1) Positive sum: facilitate buying goods and services
2) Zero sum: move money from later to earlier adopters
3) Negative sum: warm up the planet
Right now (3) is destroying much more value than (1) is creating. Moreover, all trends show that (1) is falling and (3) is rising. So it would be better for mankind if Bitcoin didn't exist. Regulation is probably the best way to achieve that.
- mavdi 9y agoThere are a lot of cryptocurrencies that don't need mining.
- lawlessone 9y agocould you elaborate? the only one i know of is IOTA , and it has many severe issues.
- mavdi 9y agoThere are a lot of pre-mined coins such as Ripple (XRP) and some are going to move to PoS (Proof of Stake) model instead of PoW (Proof of work, basically mining). Ethereum being one. There are also plenty of PoS coins out there, although not yet commonly used, but people are aware of the problem and working to fix it.
- xya3453 9y agoWhile facilitating buying goods and services is a positive, the largest benefit to global welfare is in the invention of the blockchain.
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- cousin_it 9y agoThat's not a consumer benefit in itself, but rather a cause of (1)-(3) and other possible effects in the future. It might well be negative in the end.