Topic: ✨✨✨ The Reason We Use Money ✨✨✨ - page 2. (Read 290 times)

Wrong.Wrong, a thousand times wrong.

But first, stop creating topics with these titles. Those are annoying as hell and I will start reporting them.
This is not kindergarten where we draw ponies and rockets.

And although @nullius corrected a few there are some he didn't.

Each BTC that is mined has nothing to do with difficulty, future difficulty, or electricity.
The difficulty increases after each set of 2016 blocks if the average time between blocks was below 10 minutes and decreases if the time was longer. Nothing to do with how many BTC are mined as a reward.
Time between blocks determine future difficulty.

Mining and price have nothing to do, again.

Price has gone up by 16x time since January, difficulty has gone up 5 times.

Difficulty has nothing to do with electricity.
Difficulty is related more to hashrate and an increase in hash rate doesn't mean more energy consumption it can mean better miners higher hash/w

Miner loses??? What loses? You know how much you get for a 1500$ S9 by running it one month?

You seem to be suggesting that “money” be a credit system in favor of the holder of money, which can be used as a “demand or request” against arbitrary persons “for something considered one’s due.”  Is that an accurate characterization of what you mean?


No, you are 100% incorrect.  You clearly do not understand how mining works, or what it does.  I just wrote you an explanation of the purpose of mining on one of these other threads you spawned; I suggest you read that first.  Further than that:

Incorrect:  “Each BTC that is mined increases the difficulty of the next computation.”  No.  The difficulty increases based on a calculation of how quickly the network is generating blocks.  There is a 10-minute generation target; every 2016 blocks (intended to be about every two weeks), the difficulty is raised or lowered based exclusively on whether blocks were taking shorter or longer than 10 minutes, on average.  It has absolutely nothing to do with how many BTC are mined.  The number of BTC mined is set by a schedule by block height.  This is basic stuff—you should a beginner-level introduction to how Bitcoin works, so as to avoid such mistakes.

Nah I don't think fiat money is backed by much of anything. When I say money represents a "future claim" on goods and services I mean the literal definition of a claim: a demand or request for something considered one's due. Which is exactly what it is.

So instead of exchanging product A for service B we exchange product A for money and then buy service B

This allows us to transfer assets without a direct trade through the use of a medium (money)



Wrong. Each BTC that is mined increases the difficulty of the next computation. In order to solve a more difficult equation, more electricity is required. Therefore, Bitcoin increases in value when mining costs rise. The price needs to rise in order to cover the losses of the miners (which they receive in direct payment of BTC).

Real Life Example: If cost of goods sold go up, so should your sale price

Personally I hate money cuz it causes a lot of problems. I wish it was like hundreds years ago when people just exchanged things that they needed. It was called barter. it can eliminate the financial stratification between people. It could be the victory over poverty.

This is a hideous way of describing the value of Bitcoin.

The cost of mining rises and falls because of the change in Bitcoin's value, not the other way around.  The fact that electricity was used in order to create Bitcoin has no effect on Bitcoin's value, apart from the sunk cost fallacy that may be exerted by miners (as well as speculators).

Also, the block reward is not a permanent feature.  In about 123 years, it will no longer exist.

Well, I can see how you made such a misdirected post with so many threads to keep track of.


You say you want reasonable discussion.  I asked you a reasonable question.  Contra what you insinuate, I’m proud that my post history clearly demostrates my own desire for reasonable discussion with intelligent people.  (It also evidences my total intolerance of Bcash shills and abject idiots; and I am proud of that, too.)

So, I am wondering:  How do you define “money”?  Where do you suggest it obtains its “future value”?  I think the crux of the issue is:  Do you posit that “money” is backed by something tangible, or a promise of something tangible which can be redeemed?  That seems to be hinted, but your position is unclear.

Ah. I didn't mean to put it as a reply, I meant to make a new thread.

That's why I didn't see your response. Although I wouldn't respond anyhow as I feel you are just being a cyber bully at this point. I have seen you attack person after person on the boards for seemingly no reason. I have no idea what your intentions are. I'm sorry you don't like me.

However, I am not spamming at all and have been enjoying making friends and discussing bitcoin topics

You should live and let live. Because I don't wish to argue or fight with you.

Folks, please read this before you buy into this junk, or even bother arguing about it.  ShortCoins is a spammer on a prolific FUD binge.

ShortCoins didn’t even bother to respond when I replied to the exact same text he posted on another thread:

The reason we need money is to have a medium to exchange goods and services for each other. Money is the way we divide the world's resources.

What is money?
Money is a FUTURE claim on services or goods. It represents an amount of goods one is entitled to collect on


Now lets think about how this differs from crypto currency

The reason we need crypto is to exchange goods and services for each other using a digital medium and to provide it in a decentralized but secure way.


What is crypto?
Crytpo is a PAST claim on services or goods. It represents an amount of goods or services that one has already used



Here is what I mean by the difference between a future and a past claim on goods or services. Money is a future claim on the world's resources (including labor and services). You can use that money at a future point to collect in on what you are 'owed'. This differs dramatically from crypto. Crypto is actually a past claim on services or goods, because it cannot be earned without destroying resources. The value of crypto comes from the fact that electricity, man hours, and hardware are destroyed in order to create. We are essentially destroying resources in order to make a medium that will allow us to divide the rest of the resources up. Instead we should be earning currency based on the good things we do and the resources we protect. We should be incentivized to save the world, not destroy it.

I think the process of adopting crypto is too much of a sacrifice when it comes to resources. The very things we are trying to divide up we are destroying. We arguably need money to divide the resources, but we don't need to destroy resources just to make the money