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Re: Koog post# 129899

Wednesday, 12/06/2017 9:28:14 PM

Wednesday, December 06, 2017 9:28:14 PM

Post# of 220919
No, I don't really think so. The "mining" thing was a semi-clever reference to real miners. Yes, bitcoin mining favors techies. Real mining favors experts in the business.

There's a fixed amount of gold on the planet. And so the creator of bitcoin planned for a fixed amount of bitcoin. At the beginning, some gold was relatively easy to mine; you didn't need to be a real expert. Over time, that changed, as surface mineralization was played out, and going further and further underground became more expensive.

The same was true with bitcoin. Initially, you didn't have to be a pro to mine bitcoin. But as they became more and more scarce, more and more computing power was required. Nowadays, vast amounts are needed; bitcoin mining doesn't require smarts; as I understand it, it's a brute force thing. So miners move to places with cheap electricity, and still have huge bills.

With gold, miners moved to more and more difficult projects, cost per ounce soared. That was fine when the metal was at its highs; not so much when it crashed. The same is likely to be true of bitcoin.

After all, the value of anything is up to the market. Of course, you can't hack physical gold.

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