What if cryptocurrency mining itself is a hack?
Bitcoin/altcoin mining is setting up a rig to process established algorithms in tandem with other rigs. The process is quite resource consuming. Skip the jargon, and you’re basically getting paid to crack code.
My question is, why would anyone pay you to process their bitcoin algorithms? That’s like the bank paying you to print its own money for it. The data itself has to have a percieved value to someone, or why else pay you to mine it? At best, it sounds like digital penny stocks. At worse, you’re doing someone else’s dirty work for them.
Mining also poses another question. There is only a finite number of blockchains, thus a finite number of bitcoin. Is there enough in circulation to support a global economy?
Still my deeper concern is that everybody is talking algorithms, nobody is talking data. We are solely focused on what the coin is worth. But what does the DECRYPTED data actually contain. It’s not just random characters. Dx and Xx algorithms arent designed for random data. You could reverse-engineer a key by simply encrypting enough random data of your own until you match a known coin, and create counterfeit coins (making the original useless). So the original data has to be huge and discreet.
So, what is it? Why did the algorithm creators choose their design? Why is it the foundation of cryptocurrency?
Look at other community-based distributed computing platforms, like SETI@Home. Same function, yet designed to reject random data in favor of discreet sets, and recombines them together. It’s still blockchains, keys and algorithms. How is cryptocurrency any different?