Ninjastic
PostEdited versionsQuotes to this post
Post
Topic
Board Bitcoin Discussion
Re: Annual 10% bitcoin dividends if mining were Proof-of-Stake
by
BldSwtTrs
on 29/04/2014, 16:36:05 UTC
Quote from: cbeast on April 29, 2014, 03:37:01 PM
Quote from: rpietila on April 29, 2014, 03:34:28 PM
Quote from: toast on April 29, 2014, 03:20:49 PM
The belief that mining somehow "backs" or adds value to bitcoin is like a cult mentality.

It is a fact that mining somehow backs and adds value to Bitcoin. But how to explain it best? Who can help? (I am at a loss despite calling me "monetary economist" even before Bitcoin was invented  Embarrassed )
The simplest explanation: It is proof of actually doing work, not proof of being rich, greedy, and power hungry.
Doing work doesn't entitled you to anything. You can dig hold and refill them with the soil you just extract all day long, nobody in his right mind will pay you to do so.

Thinking that work back value is marxism, thinking that useless work adds value is keynesianism. Both are deeply broken economics theories.