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@ Crypto Relay
2025-04-30 09:56:13
Proof of Work in Cryptocurrency is Based on Marx's Labor Theory of Value
Every cryptocurrency that uses proof of work algorithms is based on Karl Marx's Labor Theory of Value. Namely, proof of work makes each unit of the currency arbitrarily difficult to obtain, immune to forgery, and as an ancillary benefit, resistant to censorship. Marx says the work expended to mine the coins is what gives them their value, since there is no other way to create them and it requires human effort and energy. 1.2 Billion Gigawatts of electricity are burned up every day for BTC mining alone, confirming the validity of proof of work. Therefore I am curious why Marx's LTV seems to get bashed routinely by BTC Maxies. Is this another example of their hypocrisy and ignorance of economics? Or has LTV really been discredited? I have my doubts about modern economic theories, MMT and Keynes theories have gotten us to the brink of a massive financial collapse and/or hyperinflation after all.
Also, in another twist of irony, the Maxies I see arguing against Labor Theory of Value seem to be blissfully unaware that LTV is one of the main reasons that fiat money has NO intrinsic value. Hardly any labor is expended when the Fed presses that "ONE TRILLION BRRRR" button, making it too easy to debase away any value stored in the USD. And as we're seeing today, USD value is eroding quickly because of a few words from an Orange Guy. Of course there are always Men With Guns...
EDIT: to anyone who wants to argue about Marx's critique of capitalism, head on over to r/Socialism please. This thread is only about Marx's Labor Theory of Value and how it relates to Proof of Work Mining on cryptocurrencies.
submitted by /u/Kallen501
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https://www.reddit.com/r/btc/comments/1kb0ps9/proof_of_work_in_cryptocurrency_is_based_on_marxs/