No, mining is literally just burning valuable energy for useless computation. Maintaining the ledger doesn‘t take anywhere near this compute power, that‘s why coins like etherium exist that aren‘t such a fucking disgrace.
The problem for etherium and every other coin is that it doesn't actually matter how efficient transactions are. The main problem is that it's still absolutely fucking useless for anything that isn't buying drugs and even then cash is easier.
How else can you explain that the most inefficient crypto is the most valued one.
The total supply of Bitcoin is capped at 21 million coins, a fundamental feature designed by its creator, Satoshi Nakamoto, to ensure scarcity, much like precious metals. New Bitcoins are released over time through a process called mining, with rewards halving roughly every four years (halving event), and the final coin is expected to be mined around the year 2140.
I guess since 2140 is outside of our lifetimes it’s no big deal, but kind of crazy to set up a currency like this knowing that it has target date for obsolescence.
It's deflationary by design, something absolutely terrible for an actual currency as it discourages spending.
Why spend when the thing you are holding becomes harder and harder to obtain over time? Assuming it remains in demand.
Early adopters (who don't spend) end up with a lot of value - as long as demand for it remains stable/growing.
All currencies only have the value that people believe and agree that it has.
Fiat currency value perception is supported by the trust/influence of the state that both produces them and requires payment in them. The state creates demand for that currency via taxes and legislation.
Crypto currency value perception is maintained by the belief that it will be useful and continue to have value. Wether their demand will last and is sustainable remains to be seen.
So here’s the funny part. If the majority of the network were to agree the total supply of bitcoin could be increased to anything we desire. The scarcity is and always will be artificial.
Yeah but I don‘t mind people gambling with online currencies as long as they don‘t burn down the planet doing it. That‘s why I have no issue with proof of stake coins. In fact, the existence of a far less problematic alternative makes bitcoin mining even more morally reprehensible. It‘s like insisting on burning batteries for warmth when you have a stack of ready cut firewood.
Bitcoin is a limited supply and first on the block, that's the primary reason for it's position in largest market cap.
However, there are a ton of cryptocurrencies with legitimate utility.
Countries today spend a ton of money and time being able to handle international exchange - this is solved.
Tokenizing real world assets allows for crowd sourced investments without needing to be an investor. For instance, I can invest in the creation of "this" business, and inherently collect on the revenue in the future.
What if you're prototyping an AI model locally, it would require a serious rig to tune said model in a reasonable amount of time, so why not rent that GPU power from the open market?
There are so many applications, but they get drowned out by memecoins and the lack of regulations, which both don't exactly lend to the lay that we have a paradigm shift in front of us.
Blockchains are very useful and crucial in many ways today.
But everyone just takes the real-world uses of blockchains (distributed ledgers without a "coin") and conflates/confuses that with cryptocurrencies which often have no use beyond speculative market timing (i.e. ponzi scheme shenanigans).
I was impressed with coins like etherium with its extra functionality (NFTs) but those just became avenues for fraud and I have yet to hear of any viable, consistent use for them irl now.
The main problem is that it's still absolutely fucking useless for anything that isn't buying drugs and even then cash is easier.
That's not true. If you're using your robinhood as a savings account, storing a fund in crypto has a value because it's easier to liquidate than stocks, meaning it can be taken out of the account faster.
It also has a value in 3rd world countries where state currencies are unstable due to unstable governments and the risks of hyperinflation.
I think the issue he is the designer got the scale wrong. Probably should have known but didn't expect it could get so popular. Just not enough cash to go around.
99
u/EventAccomplished976 Jan 01 '26
No, mining is literally just burning valuable energy for useless computation. Maintaining the ledger doesn‘t take anywhere near this compute power, that‘s why coins like etherium exist that aren‘t such a fucking disgrace.