Just want to point out that Proof of Work is not the same as "created out of thin air". All bitcoins were produced from consuming energy. There is an actual cost (in electricity) to mine and produce new BTC.
Some other cryptos did away with Proof of Work because they said it's wasteful. Okay. But the alternative is trusting a central authority to manage the ledger honestly, or trusting an elite class who already owns most of the supply to be benevolent, and we know how that goes.
It works for as long as the authority maintains the power to be a credible threat. And even when that breaks down there very quickly arises another authority.
"both created out of thin air"
it's unfortunate that people don't understand what money is or can be. real money is not 'declared' (US Constitution), it is 'agreed upon'.
Just want to point out that Proof of Work is not the same as "created out of thin air". All bitcoins were produced from consuming energy. There is an actual cost (in electricity) to mine and produce new BTC.
Some other cryptos did away with Proof of Work because they said it's wasteful. Okay. But the alternative is trusting a central authority to manage the ledger honestly, or trusting an elite class who already owns most of the supply to be benevolent, and we know how that goes.
Declaration by armed authority is a good way to get a lot of people to agree upon something.
That only works for so long.
It works for as long as the authority maintains the power to be a credible threat. And even when that breaks down there very quickly arises another authority.