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Speculators Required

2022-02-11 20:01:31.72054+01 by Dan Lyke 0 comments

DSHR's blog: EE380 Talk:

Because miners' opex and capex costs cannot be paid in the blockchain's cryptocurrency, exchanges are required to enable the rewards for mining to be converted into fiat currency to pay these costs. Someone needs to be on the other side of these sell orders. The only reason to be on the buy side of these orders is the belief that "number go up". Thus the exchanges need to attract speculators in order to perform their function.

Thus a permissionless blockchain requires a cryptocurrency to function, and this cryptocurrency requires speculation to function.

[ related topics: Weblogs Sociology Mathematics California Culture Currency ]

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