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There is no mining, coins are "minted" by approved partners
by tommoor 7y ago
There is no mining, coins are "minted" by approved partners
- LinuxBender 7y agoSomeone has to mine them though, right?
- helen___keller 7y agoNo
- LinuxBender 7y agoI suppose I am confused. Ether currency is supposed to be a hard to create thing, much like the theory of gold being a scarce mineral. If someone can just "mint" it without mining, then it is not a scarce resource and should not be worth anything.
- helen___keller 7y agoIt's tied to real world assets, 1 to 1 with a basket of currencies. It's only scarce if this rule continues to be followed, so valuation of the virtual asset will depend on users' trust that the real world assets exist and will always exist in a 1 to 1 ratio with the virtual asset. For an example of this being attempted already, see Tether / USDT which is (supposedly) 1 for 1 backed by US dollars.
- LinuxBender 7y agoI see. Thankyou for the explanation.