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Coin value is not based on electricity usage in PoW. Due to difficulty adjustment, electricity usage is an effect of coin value, not a cause. If coin value goes
by DennisP 6y ago
Coin value is not based on electricity usage in PoW. Due to difficulty adjustment, electricity usage is an effect of coin value, not a cause. If coin value goes up, mining becomes more profitable, more miners jump in, and electricity usage goes up. If coin value drops, the opposite happens.
- jkhdigital 6y agoCoin value is a social phenomenon anyway, so it’s kind of meaningless to assign cause and effect. My point was that electricity usage in PoW provides an external metric for assigning exchange value to the coin which is not self-referential, unlike in PoS.