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How could wasted hardware be part of a valuation?
by justincormack 14y ago
How could wasted hardware be part of a valuation?
- kzrdude 14y agoThe hardware working in the bitcoin network is it's capital backing. The more hardware backs it, the more resilient bitcoin is to attacks. If we valued one bitcoin at $1 million today, we would have a problem, because the hardware required to attack the network would be much cheaper than the potential gains of an attack.
- justincormack 14y agoIt is not capital backing in that I cannot exchange a bit coin for a computer. Agree it may provide an upper bound on the value of bitcoin, but not a lower bound.