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The general idea is that for something to have monetary value, it has to be scarce. Why would you ever trade a loaf of bread for something that you have an infi
by Chabsff 4y ago
The general idea is that for something to have monetary value, it has to be scarce. Why would you ever trade a loaf of bread for something that you have an infinite supply of in the first place?
Cryptocurrencies are fundamentally a means of creating a decentralised digital scarce resource, and the Bitcoin blockchain is a rough proof of concept that it is theoretically achievable, albeit using a spectacularly inefficient method.
Artificial digital scarcity is the whole point.
- Semtexzv 4y agoScarcity is a hard requirement for something to be money. Since we as a society require money to transfer and preserve value, the money being open-source, decentralized artificial scarcity(like Bitcoin) does not contradict with FOSS ideals. On the contrary, it widens them from a technological sphere to economics.