How Internet Economics Could Be Affected By Crypto Mining

There is no scarcity of alarmism over the increasing costs of mining crypto assets. But another way of looking at the problem is: the answer to rising problems could be delivered by mining in social media, commodification, and Internet economics of information toward actual productivity.

Keynes Contra Gold

J.M. Keynes approved what the critics of the gold standard said. He inscribed a monograph in 1923 that doomed governments for devaluing the currency, warned of monetary variability after the war, and then released a bomb at the end of the book. He aforesaid that the gold standard is too uncompromising for modern times. It has to go. Certainly, it is a “barbarous relic” that should be substituted by a money exclusively managed by the central bank.

Digital Gold

Bitcoin is being called Digital Gold for a reason. It was organized to function the like the classical gold standard without the backing of the government. It does not require centralized management. You have to spend resources to become the first proprietor of the initial resource. There is a limited supply of the fee. Payments are definitively settled when made. Bitcoin is the gold standard ported over to the digital age.

Worth the Cost

An article was written by Roger Garrison on the topic in 1983. He pointed out that all costs are actually opportunity costs — the issue is you have to give up in order to acquire what you want. The gold standard is rightly compared with the paper standard that substituted it. What are the prices of the paper standard? This is the reasonable question if we are going to evaluate whether the gold standard is somehow the value they say it is.

Payment Systems

The fiat system is a catastrophe for your individual finances. When you spend your money in an uncommon way, you are almost guaranteed to get a pushback from your credit card company. Even with that, every few couples of years, your cards are announced stolen and you then have to get a novel one and modify the numbers on every online commercial website. If this has been done for 10 or 15 years, there is an enormous paper trail of invalid credit cards on your websites.

The condemnation of the gold standard was completely misguided. Eradicating it led to amazing levels of debt, government development, war, and loss of autonomy. Let us please not go down similar paths with cryptocurrency. It is a stunning innovation. All great things in life come at a price. The key is to turn the cost into opportunity.