The problem with coin mining

Bitcoin involves two basic ideas , one of which is brilliant and the other of which is hare-brained. The brilliant idea is that of the blockchain itself , basically a bomb-proof ledger . The idea what I view as hare-brained is the idea of coin mining, which is basically a cybernetic model of the economy of producing and dealing with gold; that idea amounts to the production of an artificial scarcity in a rising age of abundance, which is the opposite of scarcity . Coin mining is hugely wasteful of resources, regressive, inflationary, subject to gaming and manipulation, and does not do anything to promote physical economy as did the National Banks of the United States in the early 1800s . There is also the problem that governments could simply shut the whole business down any time they felt like . In particular, the Constitution of the United grants the power to coin money to the federal government , and not to a bunch of guys who simply decide to create their own monetary system . Like, what could go wrong??

So long as coin mining is the accepted means of increasing the money supply within cryptocurrency systems , I could not recommend anybody getting involved in the business .

Now, in theory at least, one of our states ( or some entire nation for that matter) could do the following: create a cryptocurrency and a state or National Bank at the same time, immediately legitimize the cryptocurrency jn the same manner in which English kings legitimized the tally sticks that the English used for money for centuries by declaring that all state and local taxes could be paid with it, and then proceeded to use credit for infrastructure project and credit-worthy industrial projects as a primary means of increasing the supply of money . That would in fact fix the problems.