Bitcoin Miners Compete, But Also Work Together
Folks like to mine bitcoins for a number of reasons, and regardless of what their specific reason is, no one can really blame them. Obviously, anyone who has gone out and purchased special equipment for the purposes of mining is desirous of bringing about a result. That result is to solve blocks and put bitcoins into their wallet, from where they might be sold. Profit is the goal for the most serious miners, and they are confident that they are dealing in a currency that has a very bright future, because they are expecting that their value, relative to other currencies, is not only going to hold, but also go up.
However, beyond those financial motivations, there are other reasons why people get involved to the extent they do. It is conceivable to say that their interest is altruistic in a sense. There is a certain attitude of cooperation that pervades the entire bitcoin experience. And we say that even though the pursuit of bitcoins itself is individualistic, capitalist, independent, competitive – even opportunistic. They can put all of that aside for the greater good. You see, they realize that the stronger the network, the greater the value in the overall product. And when there is more value in the product, then everybody who deals in bitcoin is better off. And, we might add, a residual, though not inconsequential, effect of this is that the bitcoins are going to be worth more money.
It makes all the sense in the world, of course, and it is a ruling principle of all economies. Remember always that bitcoin is an economy unto itself. You can visit exchange sites and you will see the value of one unit of bitcoin measured against units of other currencies such as the United States or Canadian dollar, the Japanese Yen, the British Pound, the Euro, South African Rand and other currencies. Because it can be exchanged, there is an inherent value, and that means something to all the people who have it.
Those who have bitcoins are very hopeful that they will be able to retain some real value, and in fact, hope to see an appreciation in that value, as time progresses, especially since there is going to be a limited amount available. That differs from the U.S. dollar, which has seen massive infusions at will in the past, thus creating inflation. Bitcoins have a better chance at maintaining some value.