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| jlauro said: 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. |
While in theory the number of coins must be infinite there is still a limit of how many coins you can feasible have and storage is not really the issue, rather how hard is to "mine" the hashes necessary to add the new coin in the cryptocurrency ledge. If you are interested in a more technical language, the ledge works inside a Blockchain network and the hashes are used in POW (Proof of work) and it works like... I don't know if I have proper English to explain, in portuguese we call this "lastro financeiro/monetário", it's to assert or coin as a trustful part of the ledge/chain
Like Svenno already explained, think this as a pyramid. The demand for coins create more coins, but there is a limit of how many coins anyone can mine hence people are hushing to create more coins and trying to get some money from people who are waiting too long to get their own coins. It's a market bubble, eventually we will face a bitcoin crisis. Good news for people who likes pyramids is: You can just start a new one blockchain network with a new cryptocurrency and starting mining from scratch. Nice, right?
Last edited by IcaroRibeiro - on 13 November 2021
