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Cryptocurrency is not at all something I've gone deep in, but don't "miners" always earn something in return for processing transactions? Otherwise how on eart
by pengaru 4y ago
Cryptocurrency is not at all something I've gone deep in, but don't "miners" always earn something in return for processing transactions?
Otherwise how on earth would you incentivize the network existing in the long-term? Nobody is going to acquire/power/maintain/network/operate these hashing machines if there's no return for their efforts.
- kortilla 4y agoWell the point of proof of stake is that you don’t need the excessive wasted cpu power to prove transactions. So the whole concept of big expensive mining operations just evaporates for coins that use this. Proof of work (bitcoin) will always have them though. The lower bitcoin price will just wipe out the viability of a lot of miners and hash rate will decrease globally. At that point the network will adjust the difficulty until the target block rate is reached with the remaining miners who can afford at that expected payout.
- kadoban 4y ago> don't "miners" always earn something in return for processing transactions? Yes, but that is still subject to the cost of actually doing the processing. It's perfectly possible that it's net-negative for anyone without free power in a certain area. There can even be load differences when it's just not worth enough that every gamer will bother setting their machine to hash in off hours.