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0 pointsTaek8y ago0 comments

That energy is not just confirming the transactions in the existing block, it is protecting all transactions in the blockchain history, adding security to each of them. That represents a history of more than $70 billion in value. Suddenly it doesn't seem so expensive anymore.

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Tomte8y ago

That's actually revealing.

First people try to argue that all this gigantic energy expenditure "buys" security.

And then – in the fine print – you are learning that you don't actually "buy" security, you have been sold a subscription. This gigantic waste of energy doesn't do anything unless you follow up with even more energy.

So the calculations that x amount of energy "secures" y amount of economic value is flat out wrong. Because x should be x + x' + x'' ad infinitum.

Oh, and the longer you stay in, the more difficult is getting out, because "sunk cost" isn't a fallacy in this scheme, it's actually real.

TaekOP8y ago

Yeah, the inflation is a tax more or less. It's a tax on your holdings to pay for the security and integrity of the network, and to make sure things keep moving forward.

Bitcoin is nearing the point where most security will be paid by fees instead of inflation, but imo inflation is the more fair model to pay for security.

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