Very good and fair point, I think mining is also a heavy burden for the environment. However if it is doomed I am not sure. We can look at normal gold, the kind of burden and cost for the environment is hard to defend. Whole fields are plown through and hundreds of thousands gallons of gasoline is burned. But still it keeps its place and value in the economy as it is rare and stands the test of time . Perhaps it is the extreme hard labor that goes into mining that also justifies its value ?
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The problem for Bitcoin is that unlike gold Bitcoin can be easily cloned, or replaced with better technology, as is in fact happening already with the likes of Steem.
How can Bitcoin compete long term with blockchains that have a lot more capabilities,
run much faster (3 second transactions on Steem vs 10 minutes on Bitcoin), charge no transaction fees, can scale to millions of tps, vs Bitcoin being stuck in 10-30 tps and charging ever increasing transaction fees?
Mining blockchains are at a huge cost disadvantage vs non-mining blockchains.
Think about this, Bitcoin blockchain is burning money that other blockchains, like Steem, can use to bring value to investors and fund its development.
Silver is more useful than gold, equally hard to clone, still its value can't be compared to gold. It's because gold was determined to be the King. Value is determined by us people, maybe soon if the general consensus is that some other crypto will be worth more than that might happen, but Bitcoin sure has a first mover advantage, and I don't think people are putting their
Money in Bitcoin because it has the best technology ..
Yes, Bitcoin does have first mover advantage, but it is fading and as you may have noticed Bitcoin dominance is already gone. Till early this year Bitcoin had 80-90% of the total market cap for crypto-coins, now it is less than half. This trend is irreversible.
Bitcoin will likely be around for a long time, but I expect it to fall behind in market cap and adoption to more capable blockchains within next 1-3 years, 5 years at most. I have a strong suspicion EOS will be the one to take the crown from Bitcoin in the next 2-3 years.
Lets see if I am right.
If you are right the EOS is a hell of an investment right now ! Actually it is a screaming buy at the moment
Yep :)
I am stocking up on EOS and telling all who will listen. This thing will go much further than Bitcoin!
Bitcoin is like a coal powered train compared to EOS galactic spaceship.
I like that metaphor :)
"Perhaps it is the extreme hard labor that goes into mining that also justifies its value ?" - I think it is a fallacy to correlate cost with value. If someone burns up a bunch of money or does a lot of meaningless and useless work, he may benefit from the exercise, but he has not created value even though his cost was high and he worked a lot. Value comes from utility of the outcome. If nothing of use was produced, regardless of how large was expense or how much work was done, value was not created.
If same or better outcome can be obtained without the expense (mining), spending resources on it is fully wasteful. When there was no alternative to mining, it was justified, but not any longer, as much better and cheaper alternatives exist.
I agree that is a good point !