In a previous post, I explained that proof of work does absolutely not back Bitcoin value. Recently I’ve been debating in twitter about Bitcoin scarcity being a consequence of its costs of production, which I strongly disagree and I’ll briefly explain why. First, I’ll set forth my understanding of scarcity: “A scarce good is a good that has more quantity demanded than quantity supplied”(source wikipedia).

New bitcoin units come into existence through a special transaction in each block called “coinbase” that miners include in the block to collect their reward consisting of transaction fees and the block subsidy (new coins issued). …

Manuel Polavieja

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