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Burning US $1 notes could not provide backing for minted coins. A better analogy is currency backed with gold without enough in reserve to handle a run on the b
by reedlaw 4y ago
Burning US $1 notes could not provide backing for minted coins. A better analogy is currency backed with gold without enough in reserve to handle a run on the bank.
- SamBam 4y agoHow does burning over 100 MWh of electricity provide backing for a minted coin, yet directly burning currency doesn't? What's the difference, besides the pollution?
- mcintyre1994 4y agoIt could provide some level of scarcity, so if there was demand you could achieve some sort of value. It wouldn't be stable though - you couldn't make a stablecoin on proof of work either AFAIK. I guess it'd have an upper bound at $1 (why buy it for $2 if you can just burn $1), but no lower bound. So.. maybe it is a stablecoin :)