Re:Bitcoin Sinks to $41,000 Amid ‘Extreme Fear’
by vmception on Friday January 07, 2022 @10:03AM
(#29839885)
People have tried many distribution models under proof of work, so far they have all broken the economics of why the networks work:
if miners aren't desperately competing to pay off their capital expenditure, then they abuse their market position much more quickly, finding another way to assume control over the production on the network, which discourages anyone else from competing
so of all the major working consensus models it has either boiled down to either capital for miners or capital for coins that limit this abuse/control, spurring enough confidence in the network to bring on other participants (whether you or any one person personally agrees with it)
keep searching for improvements and alternatives though
if miners aren't desperately competing to pay off their capital expenditure, then they abuse their market position much more quickly, finding another way to assume control over the production on the network, which discourages anyone else from competing
so of all the major working consensus models it has either boiled down to either capital for miners or capital for coins that limit this abuse/control, spurring enough confidence in the network to bring on other participants (whether you or any one person personally agrees with it)
keep searching for improvements and alternatives though