Shouldn't they call it Crypto-Minting instead of -Mining?
@mythociate (21437)
Oklahoma City, Oklahoma
August 14, 2022 5:36am CST
Because that's what it's doing---it's taking 'the valuable resource people put into the system (a.k.a. "money")' and "minting" some cryptocurrency with it!
But I think they call it 'mining' so that we "cryptominers" think we're 'doing something' to earn our cut. (We ARE doing "something"--the image explains it far better than I could--but we aren't 'digging to find a precious resource and trading it to a bank for Promissory Notes'!)
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2 responses
@mythociate (21437)
• Oklahoma City, Oklahoma
14 Aug 22
This gets into more terms I'm not sure of---the group I'm 'minting' with also gives a 'minting' program they call a "farm"; do you know the difference between that and a 'minting' webpage?
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@Sojourn (13839)
• India
14 Aug 22
@mythociate No, I am not much into crypto so this 'farm' thing is new to me. I need to look it up too.
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@louievill (28851)
• Philippines
14 Aug 22
Actually there are cryptos that are not mined but minted, one good example is XRP of Ripple lab. Ripple lab pre-mined or minted (whichever way you want to call it) 100 billion XRP before releasing it to the public of which 45 billion+ are now in circulation and 55bn they keep in reserve. XRP can never be mined based on cryptocurrency definition of mining.
Btc and eth on the other hand are examples of mined coins, they came into existence because " miners " competed to solve complex mathematical problems of the btc algorithm using poweful computers, very much similar to racing in digging and find ores in a mine using powerful drills and equipment
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@mythociate (21437)
• Oklahoma City, Oklahoma
14 Aug 22
The way I understand it, the 'competition' (what I'M calling "minting") makes money by earning 'extra fees' the users pay.
