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>PoW miners tend to spend more and more resources on finding blocks, until the cost approaches the rewards. But the rewards go up as the cryptocurrency becomes
by mrkramer 5y ago
>PoW miners tend to spend more and more resources on finding blocks, until the cost approaches the rewards. But the rewards go up as the cryptocurrency becomes more popular, because the price and transaction fees go up. Therefore, a PoW cryptocurrency tends to "eat the world" as it becomes bigger.
Are Google and Facebook eating the world? They are processing petabytes of data on daily basis and every year there is more data and information being shared on the internet. Moore's law is our friend because as long we have better chips more data can be processed and analyzed.
Bitcoin's PoW is based on economy and game theory meaning if people do not find Bitcoin useful they will stop processing transactions or in reality they will stop investing and spending computation power and electricity.
- fuy 5y agoWhat you're saying is tautological in a sense that for for it to be true, you need to postulate that every human activity is also based on economy and game theory (otherwise, why would people behave as you say they would behave) . So your argument essentially is that governments banning bitcoin is also based on economy and game theory. Which is fine by me.
- mrkramer 5y agoI'm saying that market needs to decide whether Bitcoin is toxic commodity or not and what I mean by not is Bitcoin being useful like oil and gas are or any other commodity. And yes majority of people behave according to game theory because if they do not then they lose or in extreme cases die.
- ajuc 5y agoIf people behaved like game theory says they should then lottery, addictions and casinos wouldn't exist.
- mrkramer 5y agoRead again what I wrote >majority of people behave according to game theory because if they do not then they lose or in extreme cases die. Majority of people are not addicts but those who are lose or in extreme cases die like for example alcohol addicts, drug addicts even casino gambling addicts who tend to suicide when losses amass and loans come due.