/biz/ - Business & Finance

[Anonymous No.56932911]

Why Bitcoin is valuable, and why Kaspa will be valuable, has very little to do with cryptocurrency and everything to do with entropy.

Everything within our society is a self propagating system and these systems compete with each other for dominance. The evolution of life, our ideas, our countries, our communications networks, our transportation networks, our financial systems, and everything else in life are self propagating systems.

We can consider our universe as a closed system. Within our universe, there are no other closed systems. In order for one of these systems to propagate, it needs to decrease its' entropy. In other words, it needs to increase its' effective usage of energy in achieving the system's goal. If a system does not decrease its' entropy, it will not achieve its' stated goal, and will be out competed by other systems.

The longterm value appreciation of Bitcoin is primarily due to its' continually increasing hashrate. The hashrate is a proxy for the effective usage of energy. This energy is a proxy for the cost of the energy. As buyers continue to accumulate Bitcoin, the miners are rewarded, and because they are being rewarded, they invest further into supporting the network. As buyers are rewarded through fiat wealth, they tell their friends about Bitcoin, further increasing the value. This forms a chain reaction which over long periods of time, continues to drive the price of Bitcoin up.

Bitcoin is very good at decreasing its' entropy. There are some issues though. The high transaction fees and long conformation times result in some inefficiency of the network; i.e. it is not quickly transactable in small volumes. The causes some inefficiency in the ability of Bitcoin to achieve its' objective; the facilitation of transactions.

[Anonymous No.56932919]

Kaspa solves these problems with much lower fees and shorter transaction times. This is due to an architecture which I'm sure you've heard about this point. But this architecture is only really valuable because it increases its' ability to decrease its' entropy.
Kaspa is much better at facilitating transactions.

Kaspa also benefits from the prevalence of ASIC mining supply companies that did not exist in the early days of Bitcoin, and our improvements in communication networks since 2009. As a result, provided that the hashrate continues to increase and the number of holders continues to increase, Kaspa will continue to evolve on a far quicker timescale than Bitcoin, further driving up the price.

[Anonymous No.56933823]

Perfect, OP.

[Anonymous No.56934258]

>>56932911
So kaspa going to $26?