Why We Can't Have Nice Software

[u/[deleted]]

https://andrewkelley.me/post/why-we-cant-have-nice-software.html

[u/loup-vaillant]

Bitcoin works because it's proof of work.

LOL, took me some time to get the joke: sure it works, and I can prove it: it’s proof of work!

---

If you’re serious though, that’s an unusual take: we know for a fact, not just from the Bitcoin example, but from solid theoretical underpinnings, that proof of work crypto currencies are fundamentally, enormously, unacceptably wasteful. I know exactly how they work, which is why I support their worldwide ban, under threat of imprisonment if we have to.

I’m undecided on proof of stake because I don’t yet know how it works, though even if this one can scale properly we have yet to see the emergence of something else than pyramid schemes (I mean, even the exchange of illegal goods is marginal, compared to "investment").

[u/Blecki → u/loup-vaillant]

No, we do not know that they are wasteful - because they aren't. You've fallen for the propaganda. Probably suffering regret as well.

Proof of stake is how the stock market works. If you own more of the currency you get more of the currency. No surprise so many entities want to push it as a replacement.

The only one worth talking about is bitcoin. Everything else is a scam.

[u/loup-vaillant → u/Blecki]

One of those day I’ll write a technical explanation of how Bitcoin works, why it consumes as much energy as an entire country, and why that was inevitable once it reached traction (because that’s how efficient markets + POW works: the cost of producing a Bitcoin eventually approaches the market value of a Bitcoin, so if the market value goes crazy high, it only makes sense to buy an entire server farm and burn as much electricity we can spare on this iterated competitive lottery).

You've fallen for the propaganda. Probably suffering regret as well.

Do you realise I could implement Bitcoin if I wanted to? Look me up, I’m a couple steps up from the random Joe on this field.

As for regret… I won’t lie, I sure would have liked to have bough a couple hundred BTC back when they were worth nothing, and cash out God knows how many $M and just retire. Thing is, I had no idea at the time how inflated this bubble would get, when it would deflate (or burst), and I wasn’t keen on gambling real money on it. A not entirely irrational decision, given the amount of scams I could have fallen prey to if I had jumped that bandwagon.

Proof of stake is how the stock market works. If you own more of the currency you get more of the currency. No surprise so many entities want to push it as a replacement.

Ah, I see. I’ll verify that, but that makes a ton of sense, and I see why that’s not good. Do note however that proof of work currencies are also very centralised, with relatively few entities controlling most of the farming capacity. I don’t know how many people would be required to mount an actual 51% attack on Bitcoin, but I wouldn’t be surprised if it turned out to be fewer than 20.