Author: Eric Voskuil 2018-01-22 22:52:23
Published on: 2018-01-22T22:52:23+00:00
The value of block space in Bitcoin is often found to be confusing. Miners invest capital before any block space can exist which results from anticipation of future returns. The first miner who mined the then-worthless "tokens" had anticipated that it would have a future value and it turned out to be right. However, betting on future prices has its own risks and if nobody does it, there are no products. In response to Ilan Oh's statement about the chain with the most mining power having more value, Mark Friedenbach explains that the causality is actually backwards. He believes that tokens which are worth more value will attract more mining hash rate and miners respond to cash-out value, they don't set it.
Updated on: 2023-06-13T00:03:55.828396+00:00