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It cost compute power to produce the tokens, but that's sunk cost, not intrinsic. All that matters afterward is whether people want the tokens and will exchange
by not2b 5y ago
It cost compute power to produce the tokens, but that's sunk cost, not intrinsic. All that matters afterward is whether people want the tokens and will exchange things of value for them.
- colejohnson66 5y agoIs fiat currency any different? My coins and bills don't have any intrinsic value either, but they are still currency.
- not2b 5y agoIf your debts and bills are denominated in the currency of your country, the bills and coins have value because you know how many of them you need to pay what you owe. So yes, if we ever got to the stage where your rent is priced in some coin, that coin would correspond to a currency. But until then, it's more like a volatile stock and "currency" is a misnomer.
- ahtihn 5y agoI think the intrinsic value is coming from the fact that you need to spend eth to run smart contracts on the Ethereum blockchain.
- exdsq 5y agoI mean the use of those to power arbitrary computation on the network. It’s not dissimilar to AWS tokens.