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Old 3rd January 2018, 04:03 AM   #1378
PartSkeptic
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Join Date: Jan 2012
Location: South Africa
Posts: 4,801
I am researching some of the issues about currency, and taking one issue at a time.

Here is a false claim:

Quote:
https://steemit.com/cryptocurrency/@...itcoin-is-born

The second is even more mind blowing: American dollars are created by debt. In stark contrast, cryptocurrencies are created by work. If there was ever a scam at work in the world of currencies, creating new dollars out of debt would seem pretty high on my list. Mining Bitcoin or curating Steem? Not so much.

When a person buys a house and takes out a loan from the bank, the debt is backed by a physical asset. The house. The bank can ask the Reserve Bank for cash and use the debt/asset. The dollar cash is backed by an asset.

When a bitcoin is created, electricity is used which creates nothing but a number. That is not "work". It is the same as burning down a tree and getting nothing but smoke and carbon dioxide as proof or work.
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