5 ms·
The supply of ETH is only related to electricity when it's possible to mine it with electricity. Otherwise, what keeps the price of crypto up is people competin
by whatshisface 4y ago
The supply of ETH is only related to electricity when it's possible to mine it with electricity. Otherwise, what keeps the price of crypto up is people competing to get currency for uses like remittance. Since sending money to another country using a cryptocurrency ties up an amount of currency for a period of time, users have to compete for the available tokens in order to exchange with them.
- fizzynut 4y agoThat's my point though, after the merge the proof of stake nodes are earning a lot of ETH for a fraction of the previous cost, the only way price should stay stable is if everyone with a stake agrees not to undercut each other.
- whatshisface 4y ago>earning a lot of ETH for a fraction of the previous cost That will only be true if mining is a significant contributor to the availability of ETH. Instead, I think that most ETH comes from sellers of existing tokens rather than miners.
- T0Bi 4y agoThe rewards are decreasing as well. Issuance is reduced by 90% from currently ~13k ETH/Day to 1600 ETH /Day.
- skybrian 4y agoHow do you know it's a "fraction of the previous costs?" You do need to buy ETH instead of hardware. I did some quick searches and got varying interest rates, so I'm not sure what the expected return is.