3 ms·

They increase the usage and attractiveness of the Ethereum network. So while they don't directly cost energy, the Ethereum network expands to use all available

They increase the usage and attractiveness of the Ethereum network. So while they don't directly cost energy, the Ethereum network expands to use all available energy priced less than the current token price (as all Proof of Work schemes do). Anything that increases the token price of Ethereum indirectly increases the energy use of the Ethereum network.

rfd4sgmk8u 5y ago
That is a second order effect at best. The loose fiat monetary policy of States also drives the price of cryptocurrencies -- far more so. Is this also to blame for the energy usage of Proof of Work? I would say it has a bigger effect on fixed emission cryptocurrencies than stupid tokens. Cut the money printing, save the environment?
- specialp 5y ago
  The price of cryptocurrencies seems to have almost no relationship to stability and inflation of fiat currency. One would expect when bad inflation reports come out, and the stock market declines, cryptocurrencies would benefit from being an inflation hedge. But they don't. They often decline as well. It appears the rise and fall of cryptocurrencies correlate with the overall market's appetite for risk and speculation.
  - rfd4sgmk8u 5y ago
    I very much disagree. I think the relationship is fairly obvious: https://usdsat.com/ https://usdsat.com/ You may not be familiar with the history: "The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust" -- SN (2009) Literally why Bitcoin was invented. You can choose whatever you want to believe regarding reported inflation numbers. I tend to believe the metrics that show very high asset inflation in since 2009. And fact anything desirable seems to get cheaper in Bitcoin terms over time. Why do you think cryptocurrencies are popular places with very high (reported) inflation, like Nigeria and Turkey?

rfd4sgmk8u 5y ago

That is a second order effect at best. The loose fiat monetary policy of States also drives the price of cryptocurrencies -- far more so. Is this also to blame for the energy usage of Proof of Work? I would say it has a bigger effect on fixed emission cryptocurrencies than stupid tokens. Cut the money printing, save the environment?

specialp 5y ago
The price of cryptocurrencies seems to have almost no relationship to stability and inflation of fiat currency. One would expect when bad inflation reports come out, and the stock market declines, cryptocurrencies would benefit from being an inflation hedge. But they don't. They often decline as well. It appears the rise and fall of cryptocurrencies correlate with the overall market's appetite for risk and speculation.
- rfd4sgmk8u 5y ago
  I very much disagree. I think the relationship is fairly obvious: https://usdsat.com/ https://usdsat.com/ You may not be familiar with the history: "The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust" -- SN (2009) Literally why Bitcoin was invented. You can choose whatever you want to believe regarding reported inflation numbers. I tend to believe the metrics that show very high asset inflation in since 2009. And fact anything desirable seems to get cheaper in Bitcoin terms over time. Why do you think cryptocurrencies are popular places with very high (reported) inflation, like Nigeria and Turkey?