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Not quite -- in Bitcoin (and other hard money, proof of work coins) we use energy to mine, and that ensures that bitcoin is hard to produce. We must consider th
by rfd4sgmk8u 5y ago
Not quite -- in Bitcoin (and other hard money, proof of work coins) we use energy to mine, and that ensures that bitcoin is hard to produce. We must consider the 'stock to flow' model of emission. Proof of Stake coins are made up out of thin air and are actually worthless.
- rspeele 5y agoThe work isn't what makes Bitcoins valuable though. I could create a new PoW cryptocurrency with twice the mining difficulty of Bitcoin, and it wouldn't be worth as much as Bitcoin, let alone twice as much. The labor theory of value doesn't hold up. The only thing that makes Bitcoin, PoS coins, gold, or anything else valuable is a market of willing buyers. There seems to be no rule stopping that market from developing for practically any asset no matter how absurd.
- Tepix 5y agoIf i create another PoW coin then it will also become valuable if i just increase the hashrate enough? No. It has to be desirable, too. Given that bitcoin has lost most of its utility since its inception, it's also losing its desirability.