The simple fact that bitcoin can not be artificially inflated and is forever limited to the maximum 21 million coins is enough reason alone to make your statement that “all crypto is fiat” absolutely retarded :D
What makes gold valuable? It’s not that it’s pretty… it’s that it is not infinite… is expensive to obtain / extract it.
Bitcoin is no different….
Computers running 24/7 are hashing math calculations via sha256 algorithm… they have to get lucky to find the correct calculation and extract new some of the remaining unminted bitcoins from the max 21m.
This costs electricity.
This same process is what makes the network secure, decentralized, and accessible from anywhere in the world.
Bitcoin mining is effectively no different than mining for gold…. The key difference is bitcoin is actually usable and easy to transact globally than some gold nuggets are.
The simple fact that bitcoin can not be artificially inflated and is forever limited to the maximum 21 million coins is enough reason alone to make your statement that “all crypto is fiat” absolutely retarded :D
What makes gold valuable? It’s not that it’s pretty… it’s that it is not infinite… is expensive to obtain / extract it.
Bitcoin is no different….
Computers running 24/7 are hashing math calculations via sha256 algorithm… they have to get lucky to find the correct calculation and extract new some of the remaining unminted bitcoins from the max 21m.
This costs electricity.
This same process is what makes the network secure, decentralized, and accessible from anywhere in the world.
Bitcoin mining is effectively no different than mining for gold…. The key difference is bitcoin is actually usable and easy to transact globally than some gold nuggets are.
I thought gold was valuable because it doesn't oxidize, it has staying power.
That definitely is one of the traits that make it valuable
But I think the most impactful one is the fact that it fairly rare and expensive to create it