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Coinbase from YC to DPO

blog.ycombinator.com

251–260 of 883 posts

Re: Coinbase from YC to DPO

#251
post #245

Earlier quoted context omitted.

> we do need to start curbing consumption You do that by increasing the cost of consumption. Everyone has, even wealthy people, have a price point beyond which something is too expensive for them.

I agree, and what better way than to impose a tax on consumption after X dollars. Or perhaps even a general luxury tax for goods that aren't absolutely necessary for your welfare. Still better would be to start taxing natural resource usage, or even setting quotas with strict penalties. But it's hard to see politicians going along with it and I don't know if it can be monitored sensibly.

> start taxing natural resource usage

I'd go with taxing fossil fuel extraction. Every barrel of oil, liter of nat gas, or ton of coal is taxed. The revenue from these taxes should go towards either a) carbon capture or b) tax credits for lower-income households or c) UBI. The costs of these taxes will propagate throughout the economy and everyone will adjust their consumption accordingly.

Re: Coinbase from YC to DPO

#252

Earlier quoted context omitted.

Naive related question from a crypto n00b that a lazygoogle failed to answer: I just plotted some Chia. I left my laptop open to do this. Usually I would just put the laptop in power save mode all night. My understanding is that to actually make any Chia, I would need to wait ~1 year with my one 100GB plot with full-power mode enabled. Vs mostly with the case closed, as it is now, while I do other things. And this do…

Proof of stake has no mining, no datacenters. If proof of stake ends up working it would probably be almost as effective as Visa currently is. Visa is always going to be more efficient due to it's centralized nature. Currently one bitcoin transaction uses the same amount of energy as driving a tesla 2000 miles, so POS is quite an improvement.

Proof of stake still requires cryptographic validation of each block by each node, so it uses much less energy than PoW, but not none.

I think "no miners, still (distributed) datacenters" would be more accurate.

Re: Coinbase from YC to DPO

#253
post #228

Earlier quoted context omitted.

If the means of coin production require owning coins, you have these problems that PoW does not have. Definitely true for Algorand.

Owning coins is a means of validating the network and appending to the blockchain, not producing new coins.

Try reading the paper: https://people.csail.mit.edu/nickolai/papers/gilad-algorand-...

You have to own coins to produce blocks.

Re: Coinbase from YC to DPO

#254

Earlier quoted context omitted.

Except currencies have much bigger market caps, it wouldn't have worked as a currency in that range (outside of a very small economy). We are now in the initial phase where it's being used as a store of value, but sooner or later, it's going to reach roughly it's true value at which point, you would expect it to behave more like a currency rather than an asset with a huge upside.

Currencies don't have market caps, assets have market caps. The fact that people talk about crypto's "market cap" is as clear an indication that it's not and never will be a currency.

Currencies definitely have total supplies which can be measured in USD. Let's not be finicky with definitions. https://fiatmarketcap.com/

Re: Coinbase from YC to DPO

#255
post #166

Earlier quoted context omitted.

For the uninformed, what mathematical guarantees does POW have that POS doesn’t?

PoW is open-membership, because the means of coin production are not tied to owning coins already. All you need to contribute is computing power, and you can start earning coins at a profit. PoS is closed-membership with a veneer of open-membership, because the means of coin production are tied to owning a coin already. What this means in practice is that no rational coin-owner is going to sell you coins at a fast en…

Open membership is arguably a worse problem than stake requirements, as PoW participants do not have a vested interest in preserving the integrity of the chain. Ethereum 2 actually throttles validator entries and exits for exactly this reason.

As an example, any sufficiently powerful entity can temporarily and affordably commandeer computational resources with the intention of disrupting the chain.

Under PoS doing so would devalue your (presumably enormous) stake, so participants are at least incentivized to act in the interest of the chain.

Re: Coinbase from YC to DPO

#257
post #207
post #35

I'm horrendously worried about crypto gaining more marketshare as long as proof of work crypto remains mainstream. It has significantly worse externalities than just about any company I can think of (including defense contractors/vaping companies), and, if it grows larger before we have clean energy, then we virtually guarantee we won't be able to tackle global warming. We are going to bestow a world that will be sig…

If Coinbase gets sufficiently mainstream, I suspect it will mitigate a lot of this. A transfer of BTC between two Coinbase users can happen off-chain, which means skipping the work necessary to mine a block including the given transaction.

Which then negates the espoused benefits of Bitcoin, no?

Re: Coinbase from YC to DPO

#258
post #35

I'm horrendously worried about crypto gaining more marketshare as long as proof of work crypto remains mainstream. It has significantly worse externalities than just about any company I can think of (including defense contractors/vaping companies), and, if it grows larger before we have clean energy, then we virtually guarantee we won't be able to tackle global warming. We are going to bestow a world that will be sig…

the problem will fix itself after the bubble bursts. Bitcoin doesn't provide anything of much value. It is just a speculative instrument.

Re: Coinbase from YC to DPO

#259

Earlier quoted context omitted.

Couldn't agree more. I struggle to comprehend how an energy obliterating and (relatively speaking) primitive technology like Bitcoin is the top dog in this space. Sure, first mover advantage counts for something, but come on - how has superior tech not yet left it in the rearview. In a space that moves at such rapid pace with heavy investment and buckets of innovation, at some point the crowd surely will migrate en m…

I've often thought that, maybe, PoW crypto could be the Great Filter. I feel like there is a good sci-fi book here. Bitcoin continues to gain speculators, continues to rise in "value", and humans are largely powerless to stop it. It ends up forcing humans to produce more and more electricity, thus heating up the planet in a horrible feedback loop. A crypto twist on the nanontech "gray goo" threat.

I think the sci-fi end state is an interstellar civilization that exists largely to grow an ever-expanding system of Dyson Spheres, harnessing entire stars solely to fuel proof-of-work cryptocurrencies.

Re: Coinbase from YC to DPO

#260
post #233

Earlier quoted context omitted.

I know lots of really smart software people who avoided crypto because it didnt and still doesnt “make sense”. But we all didnt invest on the merit of the technology. We forgot the whole “how will people behave” part and lost out on millions.

I feel myself as value investor. That is why cryptos or Tesla and many other tech companies never made sense to me... I might be right one day, but currently it seems that market is what market is.

Everything seems so overinflated right now. As a value investor, what looks good currently?
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