Gareth Barry Conlon
Well-Known Member
- Joined
- 5 Sep 2014
- Messages
- 14,022
This is the question that i have never seen answered in any kind of satisfactory way. It takes massive processing power to keep the blockchain going. Without that it all falls down. That processing is paid for by issuing new coins. So the supply has to go up to pay the cost. But at some point that increasing supply will start to dent the value and it could easily get to a point that mining is not sustainable. If the miners bail out on mass then the game is up. Value is nil overnight.The miners who run the network are rewarded in bitcoin, the supply cannot go over its all run on a mathematical equation that's well above my comprehension.
Bitcoin is the biggest due to being the first, the technology is better now Bitcoin needs to die eventually.
In any normal investment asset class there is some underlying value. Even a bond in a defaulted company might get paid out as it goes through the insolvency process. Bond holders in Lehman Brothers got fully paid out in the end.
In crypto there is nothing to stop a total collapse.