It is not necessary to waste energy for the sake of scarcity

Gold
  • If somebody created a new crypto-project that would use up twice as much energy as Bitcoin, would such crypto-project be more valuable? The answer is, by all means, that it would not work because no one would be purchasing such coins unless there is general trust in the project and accordingly, associated liquidity.
  • Secondly, it is physically demanding to craft a hand-woven Persian carpet. However, how difficult it is to purchase an ASIC miner and plug it into an electric outlet? Almost anyone can handle such a task. Thus, it can be asserted that there is no manpower needed to produce PoW coins. On the contrary, mining coins requires both energy and human work effort. Consequently, should we consider the notion that Bitcoin is but an expensive product?
  • Subsequently, if Bitcoin actually represents a ‘voucher’ for already consumed energy, is there any real utility to it? Wouldn’t it be far greater to own a ‘voucher’ for energy, that could be used in the future?
  • We may as well soon see the real-world implementation of Tokamaks, power plants that utilize thermonuclear fusion to create energy. This, in turn, is likely to decrease electricity costs. And, if we decrease costs generate electricity … would it influence the price of PoW coins?
  • Accordingly, we do have 3 Bitcoin related coins in the top 10 cryptocurrencies in terms of market capitalization. Is there a direct correlation with the consumption of electricity? The undisputable benefit of gold is that it cannot be cloned, copied or reproduced. Conversely, any crypto project could be … over and over again, thus dissolving the importance of the original project. So, we can argue that no digital project can over compete with commodities such as gold since it is virtually impossible to regulate digital competition and so, such projects will always take advantage of the demand-curve principles in almost perfect competition conditions, much to the detriment of the original project, such as feature Bitcoin before its forks.

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