Today, I will present a very important article to you. This article is not actually mine. This article is entirely by Sir, @ErdoganTalk . Dear Sir, @ErdoganTalk has allowed me to present his article as my own style. So I will try to present the article in my own way. I have to present the article like sir @ErdoganTalk but sir's article and my article is not exactly the same.Yes, but one thing is that his article and my article have the same meaning. Hope everybody understands. Request you to read this article carefully. ....
It is the cost of maining that is commensurate with the value of the currency, not Otherwise.
It is common misconception to believe that price come from the cost of producing something's, this is called labor theory and it has been shown to be wrong. It is clearly displayed with Bitcoin, which is a rather clear test, because it adjust so quickly. When someone in the market offers to sale the coin, finds the right price with the other to buy the coin, the cost of hashing is the followed.
And the it is cost of maining, not the hashtag, it is determined by the value of the coin.
It is the same with gold. Some people in the gold bug community understand this and they can show that production increase with the rising market price of gold. It is not so clear, because the investment required for the production of gold is so large, but if you compare the price and the amount of production ( gold is not a difficult combination, so the volume of produced will increase ), you can see that there is a delay of about 10 years, it may take 5 years to make an investment decision, Then another 5 years will actually have to build a new mine understand the cost for new mines increases because they are a little less prosperous Mining with deposits and with good wealth will increase their cost with more expensive land prices, more taxes. High labor costs and other driving costs. Similarly, profits can change a lot but will gradually change to the level of general profit, Which has its roots in the choice of time. With this process, no one gets gold for free, you have to buy it or dig it at almost the same cost. Like bitcoin, anyone can make mine and gold is everywhere, the ground where you stand right now is not rich enough to lift, But it can be done. There is no need for a central bank for gold and this lack of need for any authority makes the sound of gold.
The role of difficulty adjustment is to set a deadline for the initial distribution of the currency (including the plan to halve), and to make the payment required. There should be a pre-determined time. This is not fundamental to perseverance. The assertion is that you don't get any free coins And this results in a lack of need for any authority. So what happens if there is no problem adjustment? It’s a thought test, but it can be effective for understanding. As the value of the currency increased, miners would continue to put more effort into mining and the time between blocks would decrease (the rate of blocks increased). It would go down in a minute and a few seconds and we would do a lot of orphaning and rehabilitation. We'll end up with hundreds of block manufacturers every second, and finding a block is just a miner's because of the blocks he's got. Most will be abandoned, the effort will fail and add to its cost. But the currency will still be strong. Half would come weekly, and all the coins would be mined in a short time, but the price of the new speed coins would be the same as now, with a market value of approx. Reasonable blocks for us to give money time to expand and adapt to the market and to make money We need difficulty for a variety of reasons to make sure there is a frequency. Summa Summarum, Difficulty requires adjustment, but it is not necessary for perseverance.
I can create examples from the production of consumer goods that are the same from consumer preferences, showing the first value, then the cost is followed (and volume if practical).
The application of developer funds (bitcoin cash) further increases mining costs and reduces other cost factors, mostly energy but The number of asciminers is also hashtaged in this way
Application here means it is included in the rules of valid blocks. At higher levels, it is not applied, because there may be divisions and the market may choose the alternative currency, so the market still decides. That change diverts something or grant for mining for a fund and establishes an authority, if the world wants it, will not prevent the economy from becoming money.
I hope everyone has read the article carefully. This is a very important article. But this article is not mine. I have presented it to you with permission from Sir, @ErdoganTalk . The meaning of the article that I am presenting to you and the article that Sir, @ErdoganTalk ..Thank you so much sir for giving me this opportunity.
The original author of this article is my dear sir, @ErdoganTalk Those who want to read the original article can definitely read this link.
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Thank you one more time sir, @ErdoganTalk you may have been very happy to see my activities. Sir, @ErdoganTalk if you are happy with my work be sure to let me know your valuable feedback and if anything is wrong please let me know. So that in the future I can do everything in the right way.
And sir @ErdoganTalk you said I want to present a little in my style I named this article as I hope you are happy.
Thank you so much sir, @ErdoganTalk ..
This was really my article haha. I suggest you research the things you are interested in (multiple sources), and attack it from your own angle, relying on your own experiences and your own self, and don't use my words.
Anyway, continue writing.