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A lot of your questions would be answered by reading about proof of work, the bootstrapping problem and economy in general. There are a lot of shitcoins that a
by latenightcoding 5y ago
A lot of your questions would be answered by reading about proof of work, the bootstrapping problem and economy in general.
There are a lot of shitcoins that are worthless because not enough people agreed they are valuable.
Do dollar bills have any intrinsic value ?
- anders_p 5y agoI don't think you understood the questions. "Proof of work" answers none of them. New cryptocurrencies appear all the time. This dillutes the cryptocurrency space. There's only so much capital to invest in any of them. And the dollar has value, because they're backed up by a government. Not because the bills themselves have an intrinsic value.
- latenightcoding 5y ago> New cryptocurrencies appear all the time. This dillutes the cryptocurrency space. There's only so much capital to invest in any of them. And that's exactly why a lot of these new cryptocurrencies are worthless. The space is saturated and a lot of these new coins don't offer anything new. People don't agree on its value. I mentioned this. > And the dollar has value, because they're backed up by a government. Not because the bills themselves have an intrinsic value. Well crypto is backed by a huge network of miners, hence I mentioned proof of work.
- timlardner 5y agoYes, USD is the only accepted way of paying taxes in the USA. If you wanna live and consume in the USA, you need to pay tax. If you need to pay tax you need dollars. This is generally how a country ensures demand for their currency.
- latenightcoding 5y agoThat's not intrinsic value