Quote from: RainbowKun on Today at 09:13:44 AM

Quote from: AverageGlabella on August 07, 2021, 11:10:56 AM

Quote from: RainbowKun on August 07, 2021, 08:21:28 AM

As I see it, Bitcoin is the product of value aggregation. Bitcoin mining follows the law of conservation of energy, converting the wind, water, and solar energy into electricity, and then into hashing power by mining machine and finally Bitcoin will be dug out. That is a process of storing the energy of nature in the form of Bitcoin. The stored Bitcoin is value. Bitcoin built a value network where value is exchanged and transferred in the form of Bitcoin.

This is wrong how does Bitcoin follow the law of conservation of energy? The energy that is used to mine Bitcoin is burned. Proof Of Work means that you are solving complex problems in able to get the reward. To get that reward you are putting in a lot of energy (hashrate) and then once you have solved that problem and got the reward (block reward/fees) that energy then is not converted to anything else but is lost.

Quote from: Wind_FURY on August 07, 2021, 11:06:33 AM

I stopped reading in this paragraph. I believe that’s a wrong explanation. Energy wasn’t “stored” in Bitcoin because that energy used to mine a block cannot be extacted back and be used. Bitcoin is not like a battery. Nothing was “stored”.

Proof of Work is used to “solve the problem of determining representation in majority decision making”. It’s mentioned in the white paper.

If I had merit I would give you some because the comparison with a battery is perfect.

Thank you both for your wonderful answers, and I understand what you mean. Here, let me express my thoughts again. What I want to show is that energy can ultimately be stored in the form of Bitcoin, not just a transfer of physical meaning, but a transfer of ideology.

Haha what? Are you making that up?

Quote

From a physical level, electricity is supplied to the mining machine to work, and then it is directly dissipated in the form of heat. And in terms of ideology. Through the consumption of electricity, the operation of the mining machine is maintained, and the computing power is provided to the mining machine.

And according to the proportion of computing power, the energy of block bitcoin is obtained. Therefore, from this level, by consuming energy, generating computing power, and then generating bitcoin, the final energy is stored in the form of bitcoin. Here, not only a single knowledge of physics, but also some philosophical thinking. Thank you again for your wonderful replies.

Then from that standpoint, because of that “philosophy”, any Proof of Work coin will then always have value “because energy”? Explain why Proof of Stake coins are valued.

Value is what the market makes it. If no one buys/uses the coin, it can’t have “value”. Would Bitcoin have value to a man/woman isolated in an island simply because energy was used to “mine” it?