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The difference, however, is that the compute is actually doing something: trustlessly verifying the ledger (or chain). Whereas in your description to your famil
by russdpale 8y ago
The difference, however, is that the compute is actually doing something: trustlessly verifying the ledger (or chain). Whereas in your description to your family members, your burning the match does nothing of any value, for anyone, for any reason.
I find many other issues with your framing of bitcoin, but the above is the most glaring, to me.
- man-and-laptop 8y agoExactly. The value of Bitcoin comes from the fact that it's something scarce and un-counterfeit-able, just as money should be, while also being "de-centralised" and not tied to a government or corporation. The Proof of Work (the match burning) is just the means behind how that's achieved. It is absolutely not how Bitcoin derives its value; that's actually something we'd prefer it didn't need to do, but unfortunately it has to.