Post
Topic
Board Bitcoin Discussion
Re: [Discussion]How to decentralize the price of the bitcoin? Self-moderated.
by
hatshepsut93
on 08/08/2018, 10:21:00 UTC


Would't be better if the price reflects the real effort to "create" (mine) the bitcoin, or the effort to support the network like the electricity costs + hardware investments etc.


No. That just sounds like some Marxist planned economy where everything has some fixed value and supply and demand are ignored.


I know this is almost impossible to accurately calculate it but still it will be closer to the real value than to the speculative one "controlled" by the exchanges.


Speculative value is the real value, because value itself is just a sum of personal feelings and opinions of all the people that participate in the market.


This is innovative technology and is should not relay only on the "old traditions" of price forming, we need a new revolutionary way to balance it, this is the only way to be world-wide accepted.


It absolutely should, because there's no other way for it to function. Bitcoin's price is a very important part of the protocol, because it determines how much PoW can be allocated to the network. If this mechanism gets disrupted, 51% attacks can become possible. Recently there were double-spend attacks successfully executed against some altcoins, which happened because their hashrate was too low to support the price, making the attack profitable.

Also, your idea might be just impossible to achieve, because decentralization is possible thanks to trustlesness. So, to make your system work, you somehow have to find a way to trustlessly measure all the costs of Bitcoin mining operations.