3 ms·
> … Bitcoin which by definition is only ever an exchange of value. Even if this was true (it is not) this still does not make an exchange of Bitcoin a zero-sum
by theli0nheart 5y ago
> … Bitcoin which by definition is only ever an exchange of value.
Even if this was true (it is not) this still does not make an exchange of Bitcoin a zero-sum game.
I’ll prove it.
Let’s first denominate value in BTC to simplify this. I then mine one Bitcoin with less than 1 BTC-worth of energy (I wouldn’t mine it, otherwise). I now have 1 - (cost of energy) BTC,
I then give my BTC to someone else in exchange for a Widget. I now have a Widget, and they have a non-zero amount of BTC.
At no point are the sum of our two assets equal to zero, and they never could be. This could never be a zero-sum game, either by definition or in practice. There is always a non-zero net value after adding up all assets and debts between all of the players.
My background: I studied Applied Math in college, with a focus in finance, game theory, and computer science. I studied games and game theory extensively.
- onethought 5y agoJust to be clear though, there is not a whole lot of places you can transact from Bitcoin to goods and services. Those that do accept it, pin it to the usd… so Bitcoin is only used as an exchange of value for USD. That is still zero sum. $1 in $1 out You are correct mining is at least surface level not zero sum. If you apply the assumption that the energy, computing equipment and time were worth less than the resulting btc. But given the fact it has no intrinsic value… is only valuable in exchanging between fiats… I don’t think those assumptions hold.