That's not easy to fix with more lucrative mining. Suppose your economy is growing at 3% real rate per annum. Now suppose that you try to have 3% more Bitcoins per annum, produced by mining. People will compete for these Bitcoins until the competition stops being profitable, i.e., until price exceeds profit. Then 3% of all your planetary resources are being burned on wasted computing power that competes to mine Bitcoins.
having a secure system with the properties of bitcoin is worth some amount of money compared to money wasted on frictional costs in the current financial system.
Setting fire to 3% of gross planetary product doesn't seem like it should be the best solution. Current financial wastage is more than this, sure, but who says that Bitcoin fixes all problems and they never come back?
It doesn't, but fortunately it only burns as much electricity as makes sense given the size of the bitcoin infrastructure which depends on how the market prices the bitcoin infrastructure. Bitcoin only needs to replace a small amount of inefficiency (in the grand scheme of the global financial market) to be worth it.
If you avoid drinking the kool-aid you don't regard bitcoin as a replacement for current methods of exchange. It only really serves one of the three functions of money very well.
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That's not easy to fix with more lucrative mining. Suppose your economy is growing at 3% real rate per annum. Now suppose that you try to have 3% more Bitcoins per annum, produced by mining. People will compete for these Bitcoins until the competition stops being profitable, i.e., until price exceeds profit. Then 3% of all your planetary resources are being burned on wasted computing power that competes to mine Bitcoins.
>wasted computing power
having a secure system with the properties of bitcoin is worth some amount of money compared to money wasted on frictional costs in the current financial system.
Setting fire to 3% of gross planetary product doesn't seem like it should be the best solution. Current financial wastage is more than this, sure, but who says that Bitcoin fixes all problems and they never come back?
It doesn't, but fortunately it only burns as much electricity as makes sense given the size of the bitcoin infrastructure which depends on how the market prices the bitcoin infrastructure. Bitcoin only needs to replace a small amount of inefficiency (in the grand scheme of the global financial market) to be worth it.
If you avoid drinking the kool-aid you don't regard bitcoin as a replacement for current methods of exchange. It only really serves one of the three functions of money very well.