Of all the properties of Bitcoin, the one that always seemed the most magical was how miners got paid in Bitcoin seemingly out of nowhere. Abracadabra!
As the value of Bitcoin (or any other proof-of-work crypto) goes up, so too do the rewards. It’s like being able to print your own money, right?
Just one problem: the value of the crypto that miners make has to come from somewhere. And if you’re a hodler, guess where that value is coming from?
Your pockets.
It’s a simple matter of supply and demand. Just as increasing demand for any asset increases its value, increasing its supply decreases its value. Adam Smith may have died in 1790, but his invisible hand is up to its elbow in crypto.
Read the entire article at https://dailyiconews.com/crypto-skepticism-of-the-week/who-pays-for-bitcoin-mining/jason-bloomberg/2019/05/03/.
Jason Bloomberg neither owns, nor plans to own, any cryptocurrency or other cryptotoken, either long or short.
