Non-obvious advantages. The useful mining Bitcoin?

The cost of Bitcoin mining and the amount of electricity consumed often become the main arguments of the opponents of cryptocurrencies. They argue that the maintenance of a modern financial system, taking into account its efficiency is much better than working with Bitcoin. However, analysts Bitcoinist have found evidence to the contrary.

The gold standard

At the time, opponents of gold enjoyed a similar argument, citing the high cost of mining and storing precious metal. However, the American economist Roger garrison found additional losses, which society sacrifices of the circulation of paper money:

  • the cost of the struggle of different political forces for control of emissions;
  • the cost of the activities of relevant groups who use the issue of money for its own benefit;
  • inflation is caused by incorrect allocation of resources due to the abuse of power;
  • spending business of trying to predict the future actions of governments.

In the economy we must consider the cost and benefits of the subject transaction during trading operations. In most cases, exchange is possible only when the benefits of the product for the party concerned exceed its cost.

Debt to society

According to nick Szabo, the high cost of mining Bitcoins “buys” us the scalability of society that much more important. Dynamic algorithms, Proof-of-work and the involvement of huge amount of resources computers provide protection against theft, fraud, and inflation. Instead, the crypt gives us three advantages:

  • the reduction of the state apparatus;
  • ending the endless cycle of economic UPS and crises;
  • the decrease in spending on social security and the army.

Image source — Bitcoinist

So if next time again the baseless arguments about “excessive power consumption”, consider how many other things Bitcoin can save. The very cryptocurrency cherish the members of our cozy cryptodata.

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0 Comments on “Non-obvious advantages. The useful mining Bitcoin?”

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