Physics in a sense of the current limits of computing and energy generation are based on physics. If I come up with a faster computer I get paid more and I also further secure the network. It’s a way to insure against technology advancing enough to break the network. If I come up with free electricity I only have to worry about the cost of compute. And bitcoin miners can and do ask for more money if the price of electricity goes up. They do this by holding onto mined coins for longer creating a supply shortage. The big exchanges often get their liquidity pools from miners so if the miners don’t sell they have to pay a higher price set by the market. And finally if PoW is so bad why do you admit that the price of PoS is tied to it? If bitcoin went PoS its fundamentals would collapse and most of the crypto market along with it.
Physics in a sense of the current limits of computing and energy generation are based on physics.
Moore’s law, sure. The same goes for Proof-of-Stake.
If I come up with a faster computer I get paid more and I also further secure the network.
If you come up with a faster ASICs miner you get paid more, sure. I won’t knock BTC mining for aspiring electronics engineers. Get that coin, baby!
It’s a way to insure against technology advancing enough to break the network.
But you having a faster computer means you get paid more, which means you would be advancing the technology.
If I come up with free electricity I only have to worry about the cost of compute.
Electricity is not without costs. Solar panels, hydro generating equipment, the cost of copper wire and magnets, the cost to maintain the equipment, batteries, etc… But yes, if you optimize for paying a low amount of electricty you end up only needing to worry about maintaining your mining hardware.
And bitcoin miners can and do ask for more money if the price of electricity goes up.
Well, they don’t ask…
They do this by holding onto mined coins for longer creating a supply shortage.
…they HODL, right? Same thing anyone who owns coin would do if they wanted the price to go up.
The big exchanges often get their liquidity pools from miners so if the miners don’t sell they have to pay a higher price set by the market.
Supply and demand.
And finally if PoW is so bad why do you admit that the price of PoS is tied to it?
Because BTC owners swap coins between ETH (and all other eth tokens) and BTC? Because more ETH is bought with BTC than it is with fiat money? I’m no expert, I’m just making guesses here but it seems to me if a bunch of kids got rich because they mined or bought BTC early on, some of they might want to diversify into ETH and all other tokens?
Any ties between BTC and ETH are purely market related. They have no bearing on Proof of Work or Proof of Stake.
If bitcoin went PoS its fundamentals would collapse and most of the crypto market along with it.
Bitcoins price is derived from the cost of compute, energy and a finite supply. These are the fundamentals of bitcoin. Just like the price of gold is set mostly by the cost of machinery, energy and labour to pull it out of the ground and then the extra cost of maintaining or protecting the gold reserves, there’s also a finite supply. Bitcoin going PoS would be a bit like the current gold system saying we’re not going to take it out of the ground any more but instead we’re going to say who ever owns the current stockpile gets an imaginary credit for more gold. Any new gold entering into circulation will only be in the form of gold contracts.
Physics in a sense of the current limits of computing and energy generation are based on physics. If I come up with a faster computer I get paid more and I also further secure the network. It’s a way to insure against technology advancing enough to break the network. If I come up with free electricity I only have to worry about the cost of compute. And bitcoin miners can and do ask for more money if the price of electricity goes up. They do this by holding onto mined coins for longer creating a supply shortage. The big exchanges often get their liquidity pools from miners so if the miners don’t sell they have to pay a higher price set by the market. And finally if PoW is so bad why do you admit that the price of PoS is tied to it? If bitcoin went PoS its fundamentals would collapse and most of the crypto market along with it.
Moore’s law, sure. The same goes for Proof-of-Stake.
If you come up with a faster ASICs miner you get paid more, sure. I won’t knock BTC mining for aspiring electronics engineers. Get that coin, baby!
But you having a faster computer means you get paid more, which means you would be advancing the technology.
Electricity is not without costs. Solar panels, hydro generating equipment, the cost of copper wire and magnets, the cost to maintain the equipment, batteries, etc… But yes, if you optimize for paying a low amount of electricty you end up only needing to worry about maintaining your mining hardware.
Well, they don’t ask…
…they HODL, right? Same thing anyone who owns coin would do if they wanted the price to go up.
Supply and demand.
Because BTC owners swap coins between ETH (and all other eth tokens) and BTC? Because more ETH is bought with BTC than it is with fiat money? I’m no expert, I’m just making guesses here but it seems to me if a bunch of kids got rich because they mined or bought BTC early on, some of they might want to diversify into ETH and all other tokens?
Any ties between BTC and ETH are purely market related. They have no bearing on Proof of Work or Proof of Stake.
How so?
Bitcoins price is derived from the cost of compute, energy and a finite supply. These are the fundamentals of bitcoin. Just like the price of gold is set mostly by the cost of machinery, energy and labour to pull it out of the ground and then the extra cost of maintaining or protecting the gold reserves, there’s also a finite supply. Bitcoin going PoS would be a bit like the current gold system saying we’re not going to take it out of the ground any more but instead we’re going to say who ever owns the current stockpile gets an imaginary credit for more gold. Any new gold entering into circulation will only be in the form of gold contracts.
PoW / PoS has no effect on how finite a crypto’s coins are.
I know. It’s one of the fundamentals of bitcoin though and that’s what we were talking about
Also fundamental to ETH mining.