Requiring work to add value: isn’t that Marxist Labor Theory of Value?
It’s how “miners” pretend something is being produced.
With my limited knowledge of Bitcoin and cryptocurrency,, as I understand it,,the Bitcoin mining involves using computer technology to solve different mathematical problems. ,,
And when you have solved the mathematical problems to the satisfaction of the powers that be, your reward is that you have earned Bitcoin. , you are paid in Bitcoin for doing this work.
Anyone with greater knowledge please educate all of us in more detail.
But all of this depends on people recognizing Bitcoin to be a medium of exchange or store of value. If you are earning money in the form of Bitcoin which you can then spend to buy goods and services, I suppose that all makes sense in the world of crypto.
Otherwise it’s just fiat money and they can make as much or as little as they want.
“burns up giant quantities of electricity in what I’d view as an unconscionable manner.“
They pay for the electricity. So fruitcake, why does it shock your conscience?
The white paper on Bitcoin explains ineasy to understand terms why mining is central to ensuring over a hundred years of issuance that culminates in 28m coins. If mining stopped, there would be a quantity never produced. At best there may only be 17m of the 28m total, and not the frequently quoted guess of 21m. It might be as low as 15m. Much of it was lost on old computers and phones no longer in existance.
Yes, mining is the only possible way forward for Bitcoin issuance. In the early days the cost to mine was a factor in valuation.
Today, BTC value will be a combination of mining costs, and what people who own it will exchange it. The world is seeing BTC adoption by ETFs and funds.
BTC will always be worth more than the dollar yesterday, today and in the future. No matter have devaluated the fiat, BTC will not increase in number while money is mass produced.
Brics uses BTC. Individuals use it and hold it. Even Gold is constantly increasing in ounces available.
I don’t know jack about Bitcoin but I have been able to take advantage of it by swing trading options in MSTR. If you dont like options the stock is now affordable since it split. They have added a liquid ETF called MSTX. It comes with a warning sign on Schwab not meant for overnight holding.
There are other things you can traded related to Bitcoin but MSTR has been working well for me.
You’re wrong and silly, but I won’t argue it with you. The great thing about cryptocurrency is that literally anyone can make up their own, even with the most minimal technical skills. That’s why there are tens of thousands of them. So since you are so smart, just create your new great coin fixing such supposed deficiencies and the world will come rushing to support it.