- #1
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New cryptocurrencies are being created. What advantages can a new cryptocurrency claim that aren't already features of older cryptocurrencies?
What advantages do new cryptocurrencies claim?
- Thread starter Stephen Tashi
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Discussion Overview
The discussion revolves around the advantages that new cryptocurrencies may claim compared to older ones, focusing on aspects such as energy consumption, volatility, and the implications of these features in the broader economic context.
Discussion Character
- Debate/contested
- Conceptual clarification
Main Points Raised
- Some participants suggest that alternatives to proof of work, which are energy-intensive, are a significant advantage of new cryptocurrencies.
- One participant argues that cryptocurrencies are often mischaracterized as volatile, claiming they are actually stable and that the volatility observed is a reflection of other economic factors.
- Another participant mentions stablecoins, which are designed to minimize volatility by pegging their value to state-backed currencies.
- A participant provides a technical perspective on Bitcoin's energy consumption, noting its significant electricity usage relative to its market cap and suggesting potential governmental pushback against it due to its association with criminal activities.
- One participant humorously points out the non-inertial frame of reference used in a previous claim about volatility, indicating a level of skepticism regarding the arguments presented.
Areas of Agreement / Disagreement
Participants express differing views on the volatility of cryptocurrencies, with some asserting stability while others challenge this perspective. There is no consensus on the advantages of new cryptocurrencies, as various competing claims and models are presented.
Contextual Notes
Some claims about volatility and energy consumption depend on specific definitions and contexts that are not fully explored in the discussion. The implications of cryptocurrency features on government regulation and market dynamics remain unresolved.
- #2
DavidSnider
Gold Member
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The big one these days seems to be finding alternatives to proof of work which require lots of energy.
- #3
BWV
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People sometimes falsely claim cryptocurrencies are volatile, when in fact they are extremely stable - it is only with their introduction have we learned how volatile are the prices of every else in the economy. Just the other day the value of my house, car and stock portfolio (denominated in Bitcoin) increased by 30% then fell by about the same amount
- #4
russ_watters
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You are joking, right?BWV said:
- #5
fluidistic
Gold Member
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I think he's partially joking. Some cryptocurrencies are called stablecoins for a reason, they (try to) follow states-backed up currencies. (USDT, BUSD, USDC, etc.). They are volatile but not that much, I think.russ_watters said:
- #6
fluidistic
Gold Member
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I think there is a lot more going on than that (see Polkadot... although, 2016 can be barely considered new in the cryptocurrency world!). Over my head to give an answer to the OP.DavidSnider said:
- #7
BWV
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More seriously, Bitcoin consumes around 129TW of electricity relative to a market cap of around $1T. at 10 cents/kWh that would be an annual electric bill of around $13B , or 1.3% of the market cap. Of course most of the Bitcoin power consumption comes from lower cost sources - hydro and geo in the west, with the majority coming from aging coal plants in China. Combine this with the fact that Bitcoin is the enabling technology for ransom ware and other criminal activities I cannot imagine that governments will tolerate it for long.
- #8
Leo Liu
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The frame of reference you used is non-inertial. Took me a second to realized it.BWV said:
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