Is Crypto Dead?

[antcollinet]

The part I find interesting is how AI will be able to use Bitcoin to track what people do

i doubt it will ever be able to track my bitcoin habits.

 

[pseudoid]

So, is crypto dead?

idk.
Looking back through this thread, I was reminded of the yahoo! 2002 SuperBowl commercial.

In 1996, yahoo! IPO raised $34Billion for 1.6million shares opening @$13each. All-time high stock price was $118.75 in 2000 and then reaching an all-time low of $8.11 in 2001. (\Verizon bought it for $4.5Billion, circa 2017).
I see both crypto and yahoo! riding the same market roller-coaster... yet Lakers are still playing at the Crypto.com Arena

 

[Chromatischism]

They don't as far as I know, because they are valued for their functional use cases, although a special chunk of copper or gold might fetch something extra from somebody due to historical significance, or whatever. What I guess is confusing me is this "proof of work" idea. There's no value in that. It's just there to ensure rarity. But we could ensure rarity with a ledger that was populated completely from the beginning and didn't allow for anything more to be added. There'd be no way to make more. You may say, why should anyone offer money for those rare bitcoins? I don't know, same as I don't know why wasting energy mining them would give them any value. They're rare, and like gold, diamonds or whatever, if it's rare and you've got the real deal, I don't care how hard you had to work for it or not. If it's the real deal and it's hard to come by, why does it matter how hard it was to produce? So why the mining? I get the impression the mining is the mind trick for this scam. Maybe all money is a scam, but I don't think so when there's real power in control of vital resources that's issuing it.

Update: I understand now that the mining is tied to transaction processing as well. Somebody has to pay for that, of course! Still, there are transaction fees on top of that.

Yes, the miners are nodes that run the network. All transactions have to be confirmed in a decentralized way, and the Bitcoin code & network was the developer's solution to the Byzantine Generals problem. As the inflation rate of newly minted tokens decreases over time, these nodes will become only transaction processors and make money only from fees as new token issuance becomes very rare.

Some tokens (in fact, most) pre-mine and distribute a portion of their tokens at launch. The rest are released on a vesting schedule to limit the price impact. Some generate new tokens regularly to pay nodes with staking rewards from the inflation of the token rather than rewarding them for doing work to mine new tokens. In both cases you have nodes earning rewards, but in different ways. It is said that Proof of Work is the most secure system.

 

[Ron Texas]

@pseudoid there are a lot of roller coasters. One leaves every 30 seconds.

 

[pseudoid]

 

[phoenixdogfan]

Wasn't Crypto the name of Superman's dog? If so, I, for one, would be saddened to learn of his death.