5/ If an object has value, people *will* spend effort to chase it, up to whatever the object is worth. MC=MR, in other words. PoS won’t save you from PoW’s “waste”, cost just manifests in a different way.
“Nothing is cheaper than PoW”. h/t @Truthcoin http://www.truthcoin.info/blog/pow-cheapest/ …
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Yes, you did :-). Without mentioning its name. Bear with me for a couple of tweets and I'll try to clarify some myths.
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Bitcoin's unforgeability isn't rooted in energy spent on coin production. That's a common myth.
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True, an external attacker who wants to change the record needs to buy 51% of hashpower. Another way to phrase it is that he needs to "stake hardware". That's what pow is, a specific form of stake, currently at the vagaries of ASIC manufacturers.
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The energy spent on coin production is purely wasted, it provides no price floor for coins, it is value leaked out of the system. Much like how the high cost of printing Bahts doesn't guarantee value higher than USD. It's just the cost of competition between miners.
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> energy spent on coin production is purely wasted That's a fallacy that is a result of not understanding stock & flow. Energy spent per block is what creates the larger cost barrier in hardware stock. Hardware stock == integral of future (energy) flows.https://medium.com/@hugonguyen/bitcoin-stock-flow-c4d4db98b751 …
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"Energy spent per block is wasted" has also been thoroughly debunked by
@LaurentMT's article. Same idea, stock == accumulation of flows.https://twitter.com/hugohanoi/status/1034168617351372800 … -
This article is thoroughly unrelated. I don't disagree with what Laurent said, nor does it contradict anything I said. But I can't correct every wrong person on the Internet, especially if they are both belligerent and just free-associating. Learn to engage and try again. Best.
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Oh but it is very much related :-) I’m explaining to you how the “ongoing costs” that you consider waste absolutely contribute to Bitcoin unforgeability. The hardware “stake” represents the accumulation of all future energy flows.
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off topic trivia ; about forgeability and the baht, those 10baht work in euro vending machines
pic.twitter.com/eGhFM8M5z0
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