As for rate of mining blocks vs mining physical gold, there is a key difference that make the comparison inadequate, imo:
- the option to stop mining entirely
Gold mining can stop & transactions can continue with mined gold. Bitcoin mining can't stop.
Post by twetch#12490
Good insight. Depends on your perspective on incentives, namely whether or not they are they causal. If yes, then when gold has value > cost of mining, gold mining will continue. Same with bitcoin, if it has value > cost of mining, people will mine bitcoin
What the chain says
- Block
- 623 207
- Time
- 2020-02-22T17:31:29Z
- Signer
- 17n1UjYJYSPFscU1rxZH2RX87vYx5BAi7z
- App
- twetch
- Type
- post
- Content type
- text/plain
- Name in tx
- twetch#12490
Fields the transaction did not carry are omitted. Open the payload to see the bytes as stored.
Signed by
17n1UjYJYSPFscU1rxZH2RX87vYx5BAi7z VerifiedReplies (2)
Yes... But with bitcoin if all miners stop, then the coin is dead. I can't imagine mining would commence again if that happened to a coin for some significant amont of time. But who knows.
I get your point and agree that you identified a significant difference, but in practical terms I don't see it as a fatal flaw in the time-value comparison between gold and bitcoin in terms of Gilder's theory. Incentive dynamics are another similarity imho