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The scarcity has nothing to do with the complexity in proof of work. The complexity made it costly to attack it. The scarcity comes with the idea of the number
by powerapple 6y ago
The scarcity has nothing to do with the complexity in proof of work. The complexity made it costly to attack it. The scarcity comes with the idea of the number of bitcoins will be available is a hard limit.
- mettamage 6y agoThere's a second order effect IMO: people put specialized resources into mining it. Thus people have a sunk cost. In general, people also have a sunk cost fallacy which means that the sunk cost will stay into the object/subject it was sunk in. Due to the sunk cost fallacy, Bitcoin has more value. I know this means I'm relying on the irrationality of humans, but why wouldn't I? It's more predictive than assuming humans will be rational with regards to this subject.