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The miners are not siphoning value, if that were true the network would not require them and there would be one thousand forked repos running off your imaginary
by mattwilsonn888 5y ago
The miners are not siphoning value, if that were true the network would not require them and there would be one thousand forked repos running off your imaginary system which secures account balances without the economic deterrent.
- arcticbull 5y agoYes they are. When new tokens are created through mining, they have to be sold on the market to pay the electric bills. This inflates the total supply and reduces liquidity. It extracts value. The network requires them because they themselves control the network. It's the reason the block size wasn't increased.
- mattwilsonn888 5y ago> The network requires them because they themselves control the network. It's the reason the block size wasn't increased. Have you heard of this little thing called, Bitcoin Cash? Did the miners prevent that? No, the users put the most value in what they deemed was most valuable. The miners do not have exclusive control over the network - if they did the protocol would be hyper-inflationary by now. By the way, miners selling Bitcoin by definition does not decrease liquidity, it does the opposite, it puts more Bitcoin up for sale. The fact that miners have to sell to pay for electricity does not mean they siphon value, they provide security and are compensated for it you goofball.