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Absolutely true, no one needs monero when you can have bitcoin (and lightning for private instant bitcoin payments).
Lightning Network, ready in 18 months for the last 5 years! Lol.
I never quite understand this stuff, maybe someone can help. Are cryptocurrencies supposed to be a potential replacement for real life cash? This was my understanding of the motivation behind Bitcoin, at least. If so, why does it make sense that people can "generate" cash by proving some amount of work done? This of course cannot be done with normal cash. Is the main functionality of these cryptocurrencies supposed t…
This is how money works. If you use a medium of exchange and unit of account for goods and services then that medium must increase at the same rate as the increase in goods and services otherwise you get second and third order effects such as inflation, contraction, rising unemployment, etc., directly impacting its ability to act as a unit of account.
In Bitcoin you don't generate cash, you earn block rewards for acting as a consensus broker which otherwise would require a central banking settlement layer. This activity, tied directly to the transaction layer, acts to maintain the equilibrium between increases in goods and services and expansion of the money supply.
Wall Street got ahold of it and now Bitcoin is primarily acting as a Store of Value for the purpose of speculative investments. Driven primarily by the fear of missing out and market manipulation since Bitcoin is heavily centralized.
I never quite understand this stuff, maybe someone can help. Are cryptocurrencies supposed to be a potential replacement for real life cash? This was my understanding of the motivation behind Bitcoin, at least. If so, why does it make sense that people can "generate" cash by proving some amount of work done? This of course cannot be done with normal cash. Is the main functionality of these cryptocurrencies supposed t…
Cryptocurrencies allow market participants to communicate value to each other without having to trust other market participants or an institution. Mining verifies transactions and commits them to the public record, earning the miner a fee for their work.
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> If so, why does it make sense that people can "generate" cash by proving some amount of work done? Think of it this way: If you pay with physical cash, there are people somewhere who do the work of digging ore out of the ground, smelting it, shaping it into coins, cutting and printing paper and so on. All these people do that, because they get paid in the same currency that they themselves have minted. It turns out…
ETH is trying right now with proof of ownership.
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You'll get nothing but up votes here on HN, a lot are still angry they missed the boat. But solving the problem of how to transfer value trustlessly and anonymously, instantly anywhere in the world is one of the biggest breakthroughs since the Internet. Amazing how in a few short years kids started growing up with Bitcoin and don't understand how it work or why it exists :(
But it's still mostly about the speculation, it seems.
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You'll get nothing but up votes here on HN, a lot are still angry they missed the boat. But solving the problem of how to transfer value trustlessly and anonymously, instantly anywhere in the world is one of the biggest breakthroughs since the Internet. Amazing how in a few short years kids started growing up with Bitcoin and don't understand how it work or why it exists :(
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You'll get nothing but up votes here on HN, a lot are still angry they missed the boat. But solving the problem of how to transfer value trustlessly and anonymously, instantly anywhere in the world is one of the biggest breakthroughs since the Internet. Amazing how in a few short years kids started growing up with Bitcoin and don't understand how it work or why it exists :(
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> If so, why does it make sense that people can "generate" cash by proving some amount of work done? Because you need an incentive for 'miners' to participate in transaction processing. Main functionality is transactions which are not controlled by any single entity (like the government). Most of it is speculation unfortunately, which gives it a bad name, drowning out real usecases.
So now I'm wondering, why wouldn't they just charge a transaction fee in Monero? Why mine at all? If you want to scale up to Mastercard levels.
Mining is what generates the coins. And you need mining because otherwise you need some other issuing organism. Without decentralized mining you get a central issuer, and that's untrustworthy and possible to shut down.
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I can use my compute and energy how I like, whether that’s for AI or crypto or a Minecraft server. You don’t have a right to call one “wasteful” and one not
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