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crypto isn't gold because gold doesn't need any continuous work to be done to remain a "store of value". If every single gold miner would stop doing work, gold
by compsciphd 4y ago
crypto isn't gold because gold doesn't need any continuous work to be done to remain a "store of value".
If every single gold miner would stop doing work, gold would still have "value". If every bitcoin miner stopped doing work, bitcoin would have zero value (as impossible to use as need miners to create new blocks on the chain).
That is why I dislike any comparison to gold and why crypto feels like a ponzi to me, even if its not technically a ponzi. To me a ponzi is a scheme that requires a continuous inflow of new money to prop up the old invested money. Crypto seems that way, we have to constantly spend money on it (via mining) to prop it up. If we stopped spending that money, it would by definition collapse to zero.
Just because there are incentives to keep on spending the money, doesn't take away from the fact that it requires it as well.