/biz/ - Business & Finance

>>14951872
>And this is exactly why it will fail. No one needs it, it doesn't even secure its own network and fulfils no need.

this "it doesn't even secure its own network" shit betrays a fundamental misunderstanding of what PoW really is. with Bitcoin, PoW is mostly not about securing the network, unlike what retards commonly believe. PoW is about making it possible to prove that you used a roughly known amount of energy and therefore spent a roughly known amount of money to "buy" the Bitcoin from your power outlet. it's the ultimate distributed exchange.

another way to look at it, same implication, is that you irreversibly "destroy" or "consume" some electricity, and this demonstrates, in a mathematically provable way, your belief that the Bitcoin you're mining has the same value as or more value than that electricity you paid for. you would only spend that if you think Bitcoin is worth that much or more presently and probably in the future. those are the actual rules of the Bitcoin value game. that's what PoW is actually about.

using PoW to secure the network actually weakens Bitcoin's value mechanics a bit. because it means the hashing is not entirely wasted; it is not as pure a demonstration of proof-of-belief-in-value. that's why with Bitcoin you also get the transaction fees.