| IcaroRibeiro said: ... Imagine you created an isolated community of 10k people and started your own currency named "MyCoin" to trade goods and services, it's similar and will work to anyone who accepts your "MyCoin" Just like any currency its value can up and down. The number of "MyCoins" available is not infinite ... |
Actually that is not exactly right, but is close... and what makes these digital currencies different then minting your own physical currency. Anyone can make more of the same digital currency, it just takes some amount of effort (ie: compute, or storage, etc). So, if you can do the tasks you can basically make your own bitcoin or whatever money. The interesting part is that each new coin takes more effort to produce than the previous coin. So those first growing their own money can mine / make a lot of coins relatively cheaply, and the longer more and more people have been making "free" coins, the more work it costs to make more coins.
As to why anyone would buy these worthless coins is beyond me... it's just like any other market, except no real good other than these virtual coins that took some effort to produce. In some ways it can drive technology which can be good for research into technology advances as if there were not already sufficient reasons to improve technology efficiencies.
Last edited by jlauro - on 13 November 2021
