I love the idea, but forgive my ignorance, isn't the current minimum value of a bitcoin based on the cost of the energy to produce it (a variable) and the maximum value based on demand ( also a variable). Why not just fix the value on some arbitrary value the way gold standard was originally used.
Also, it’s not about the cost of energy. Who ever wants the next 10 minute block will expend whatever is required to get it. It’s more like opportunity cost.
21 million is the arbitrary value. The genius of the scheme is that of the 21 million, units are issued on a constant 10 minute schedule until the amount is met in 2140. In addition to the proof of work, there is a difficulty adjustment so no matter how much computational power you throw at it, the issuance rate remains fixed.
I love the idea, but forgive my ignorance, isn't the current minimum value of a bitcoin based on the cost of the energy to produce it (a variable) and the maximum value based on demand ( also a variable). Why not just fix the value on some arbitrary value the way gold standard was originally used.
Also, it’s not about the cost of energy. Who ever wants the next 10 minute block will expend whatever is required to get it. It’s more like opportunity cost.
21 million is the arbitrary value. The genius of the scheme is that of the 21 million, units are issued on a constant 10 minute schedule until the amount is met in 2140. In addition to the proof of work, there is a difficulty adjustment so no matter how much computational power you throw at it, the issuance rate remains fixed.