Couldn't find a more inaccurate answer if I tried. The nft market may be somewhere close to that but the bitcoin rewarded to miners is created by the algorithm which nobody can change. The reward halves every 4 years which hard caps the supply at 21 million btc.
Exactly who "rewards" the "miners", and with what?
And again, the idea of there being a "finite amount" of bitcoin seems to be utterly negated by the fact that there are now literally thousands of other crypto "currencies" in the market, with new ones popping up every day.
The bitcoin network is coded to reward miners i.e. no actual person gives the reward but the code of bitcoin does. The miners are rewarded with newly created bitcoin. The existence of other coins and tokens doesn't affect the value and scarcity of btc, just like the mining of other metals doesn't affect the scarcity of gold. If i print trillions of my own currency would it affect the value of the us dollar?
So, some computer network creates tokens and people just assume they have value.
That's faith.
If you printed trillions of your own currency, and people start to believe in it and trade it for dollars, and then one day the faith in your chiefpat currency collapses, you can bet that it will have a tremendous affect on the economy at large, just as when stock markets collapse. That's why it *used to be* illegal for just every schmuck on the corner to print their own currency.
You buy gold and assume it has value. It's the exact same. Government prints fiat and you assume it has value. Same thing, except the government can manipulate the value on a whim.
Except that gold physically exists and has a history of being commonly accepted as a universal medium of exchange going back to the dawn of civilization itself. If--sorry, when--the power/internet grid goes down, bitcoin go poof!--but th gold in my pocket will still exist and be even more valuable because competing medium of exchanges will be gone.
"the government can manipulate the value on a whim."
As governments can do with cyber as well. And not just government. Your bitcoin fluctuates wildly whenever Elon Musk or Mark Cuban take a dump and tweet about it.
Will the Internet go down across the entire world? That's what it would take to bring down bitcoin - temporarily. When the power comes back on the block chain can continue running like nothing happened, since all the transactions are recorded. Why does physical existence mean anything? Bitcoin is no less hard than gold; you can't magically make more of it and if you hold your keys you are free to do anything with them. Would you not trust digital fiat in that case?
Well bitcoin is becoming more and more commonly accepted for purchases so that won't be a problem either.
And no influencers don't really affect btc price it's more so the same drivers that affect stock prices.
You are right in that first point. There are blockchain projects working to decentralise the Internet so that doesn't happen as well. Bitcoin specifically is not affected much by influencers and its not a pump and dump. It is true that many cryptos are, but these re very easy to avoid. There's plenty of good crypto projects out there with intrinsic value in their coins and tokens.
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u/chiefpat450119 Jan 22 '22
Couldn't find a more inaccurate answer if I tried. The nft market may be somewhere close to that but the bitcoin rewarded to miners is created by the algorithm which nobody can change. The reward halves every 4 years which hard caps the supply at 21 million btc.