IT's capitalism in its purest form. The work done is work n the physical sense of production, but from a labor perspective it ends up as a constant rote of attrition and self negation - people gt interested in coins to make a quick buck and take it easy, but either drop or spend all their time, energy, and money racing for a slice of the pie while producing little of value - in this case, trust tokens which may or may not turn out to be valuable later. The rewards always go to people who were there early and had excess capital to spend on buying, or could mine easy pickings and then let someone else take over the grind.
Oddly the mining analogy reminds me most of Eve Online, which has a professionally tuned in-game economy and where you basically have a graphic representation of everything mentioned in the article, including the tedium and energy of mining, the endless technological arms race (designed to make you invest as much time as possible or buy credits to leapfrog other players), and pointless destruction of wealth - intra-player conflict is where most of the action and excitement is because the exploratory aspect of the game is only as interesting as it yields new technology that gets recycled back into the arms race.
Perhaps the solution is a medium of exchange that doesn't use absolute units, but is a function of your ability to pay.
> a medium of exchange that doesn't use absolute units, but is a function of your ability to pay.
This is already implemented in many areas of modern life, especially by governments (Obamacare, progressive taxation, social security, etc), and it has a major negative side effect of incentivizing poverty: either real (by encouraging the young to work as little as possible) or faked (by encouraging those with accumulated wealth to conceal it as much as possible).
yes, if we take away the "he who does not work, neither shall he eat" incentive[1] people will work less. Is that good or bad? depending on your ideology, it could be either one. Do you think that it's ethical to threaten the poorest with starvation to add a few points to our gdp?
My own personal view is that using starvation to incent work is acceptable only if society is unable to produce enough food for everyone; in that case, those few points to the GDP have real impact. I personally don't feel that it's okay to use starvation to incent work when that work largely produces luxuries, but that's just me, and everyone has an opinion on this one.
[1]Interestingly, historically this aphorism has been a leftist saying... that is, the rich should have to work, too. Leaving aside my controversial views of the bible, in more recent history, John Smith used it to this meaning in Jamestown, and then in the early 20th century, Lenin argued that it was a fundamental principle necessary for socialism to work. Both were talking about situations were people were starving (the early days of Jamestown and the early days of the Russian revolution, respectively) More recently, it's used as a rightest saying, arguing that the poor ought to work or starve, something that was the assumed truth in earlier ages.
> I personally don't feel that it's okay to use starvation to incent work
I think most people would agree with you on that one. And the fact that people in "rich" countries are still food-insecure is horrible.
One problem is that there isn't a clear bright line between "starvation" (in the sense of malnutrition) and "nutritious but not very tasty food" and "nutritious and tasty but not very pretty food". And you can keep going in that vein to things like "not having a flat-screen tv", say, which I think most people would classify as quite different from "starvation". But there isn't an obvious cutoff point on the way.
Oh, and what we consider sufficiently nutritious today may not be so considered tomorrow. Both literally (at some point nutrition science discovered vitamins and then trace minerals, etc), but people nowadays also get into arguments about whether internet access is a fundamental right like food or a luxury. And whether personal transportation (e.g. cars) is a fundamental right. What will people think about access to a self-driving car 50 years from now: luxury or fundamental right?
In practice, what we consider below-acceptable standards of living (which we as a society need to subsidize until they reach acceptable levels) are a good bit higher than what was considered totally acceptable 50 years ago. That's a natural consequence of society growing richer, of course and I would say it's a _good_ thing.
But here's the question that bothers me: Had we frozen per-capita production at 50 years ago levels, while subsidizing living standards to a level above the 50-years-ago acceptable minimum but below the today acceptable minimum, such that vast numbers of people today would be forced to live below what we consider an acceptable living standard today, would that be a net gain? In the short term, clearly yes (we subsidized people at a higher level). In the medium term (to today), it seems clear to me the answer is no. In the longer term (200 years from now, say), I have no idea.
It's hard to tell even post facto, much less a priori, whether we're over-subsidizing or under-subsidizing to achieve maximal happiness. And that's even if we can all agree on a timeframe. Combine that with the fact that different people already have different definitions of what constitutes minimum acceptable living standards, and it becomes very hard to apply ethical considerations to this problem in a principled way. :(
The rewards go to the people who took on the most risk (i.e. the creators, and then the early investors). If Ether didn't have speculative value then the project would not have proceeded.
Oddly the mining analogy reminds me most of Eve Online, which has a professionally tuned in-game economy and where you basically have a graphic representation of everything mentioned in the article, including the tedium and energy of mining, the endless technological arms race (designed to make you invest as much time as possible or buy credits to leapfrog other players), and pointless destruction of wealth - intra-player conflict is where most of the action and excitement is because the exploratory aspect of the game is only as interesting as it yields new technology that gets recycled back into the arms race.
Perhaps the solution is a medium of exchange that doesn't use absolute units, but is a function of your ability to pay.