4 ms·
Why is it useful to burn energy mining? Because it mints a Bitcoin! Why is Bitcoin of value? Because we burned energy mining it! This circular argument is the
by newaccount2021 5y ago
Why is it useful to burn energy mining? Because it mints a Bitcoin!
Why is Bitcoin of value? Because we burned energy mining it!
This circular argument is the supposed value proposition of Bitcoin.
- felipeko 5y agoValue is always and everywhere a subjective phenomenon.
- javert 5y agoNo it isn't. And I say that as a bitcoin proponent.
- viro 5y agoThats not how marginal utility works or true inelastic demand.
- hobbescotch 5y agoNot exactly true. Fiat currency, in part, gets its value by the fact the governments can throw you in jail for not paying taxes with it. Sure, not going to jail could be a subjective preference, but pragmatically speaking, that's a big, objective value proposition for most people.
- felipeko 5y agoThere's no "could be" here. Not wanting to go to jail is a subjective preference. That most people prefer the same thing, does not make value objective. If it did, Bitcoin would also have "objective value" from its scarcity, difficulty of confiscation, ease of move between borders, and many other properties which are preferred by most.
- rusk 5y agoNope the value proposition is that multiple untrusted parties can agree on how much energy they’ve burned and form a consensus based on that.
- newaccount2021 5y agoThat statement is simply the plural form of the same circular argument.
- rusk 5y agoNot really. In my version the energy wastage is a means to an end. Not the end in itself. In particular, energy usage is not coupled to value. It is “collateral” damage. You could in theory replace it with some other proof of work ...
- javert 5y agoNo, you are attacking strawmen.
- mam3 5y agovalue is "decentralized store of value". if you don't believe in that ok but then you maybe think that banks magically exist without using any energy.
- deleted 5y ago[deleted]