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Is Crypto Finally Dead? (beehaw.org)

submitted 1 year ago by [email protected] to c/[email protected]

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Yes, I know that it still exist, and yes, decentralized currency which utilizes distributed, cryptographic validation is not actually a strictly bad idea, but...

Is the speculative investment scam, which crypto substantially represented, finally dead? Can we go back to buying gold bars and Pokemon cards?

I feel like it is, but I'm having a hard time putting my finger on why it lost its sheen. Maybe crypto scammers moved on to selling LLM "prompts?" Maybe the rug just got pulled enough times that everyone lost trust.

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[–] [email protected] 5 points 1 year ago* (last edited 1 year ago) (1 children)

Trust is one of the most fundamental parts of any monetary system, so brute forcing hashes in this case is directly related to it.

Bitcoin can easily serve the world on 100 Mac Minis. Probably even fewer. The fact that currently people beat themselves into burning ridiculous amounts of electricity to run Bitcoin nodes is a function of the profitability of doing that. If that profitability decreases, so will the electricity burned. If I remember correctly, the protocol is designed to reduce that reward over time and unless the dollar value of Bitcoin dramatically increases, the energy waste should decrease long term.

A secondary point on energy consumption is how that of Bitcoin compares to the traditional financial transaction systems. I don't have the numbers at the moment but last time I checked it wasn't pretty for the latter.

With all that said, if PoS is proven to be as robust as PoW, it would probably be adopted by systems currently on PoW, like Bitcoin.

[–] [email protected] 3 points 1 year ago (1 children)

I think you're missing a critical part of how blockchains function: If Bitcoin was running on only 100 Mac Minis, there is nothing stopping someone buying 101 more Mac Minis, becoming dominant in the network and suddenly they can decide to just print their own bitcoins for themself.

The profitability of running Bitcoin miners is proportional to the market cap and the value of Bitcoin itself. For Bitcoin to remain stable, the total value must remain less than the cost of hardware to dominate the consensus algorithm.

[–] [email protected] 1 points 1 year ago (1 children)

Can you elaborate on how one could print bitcoins if they controlled 50% of the network?

[–] [email protected] 1 points 1 year ago

Bitcoin miners validate transactions on the network, so if one entity controls a majority of all miners, they can validate their own fraudulent transactions