[visualradio]

Ideally a system of credit based on proof of work is based on proof of productive work embodied in artifacts which competition can increase the supply of without restraint.

A proof of productive work system can be implemented by having public employees of local loan office assess the minimum labor replacement cost of crops, equipment, structures, materials, and working inventory held on sites. Then allowing loans to be issued on security of the material capital at a duration which ensures the money is repaid before the value of the work stored in the material capital fully depreciates.

So bitcoin's proof of work algorithm is proof of unproductive work rather than proof of productive work. A public system of credit based on proof productive work stored in material capital stored on land does require establishing and maintaining a well organized state. But this is not necessarily an ethical dilemma for the majority of the population and may be necessary to solve global problems that society may be faced with in the future.

[sparsely]

If you're doing productive work then you're already producing something of value, and can likely sell more easily and safely using the existing financial system. It would have to be some sort of productive work that is not otherwise valued due to limitations in our economic system, perhaps climate change related actions as explored in Ministry for the Future. Still seems like it would just be easier to pay people normally to do that work.

[prox]

What I think you’re saying is that it’s not adding value?

For me at least that is it main flaw. Trust is the only thing that’s keeping it alive, and the need for more people to buy into it. To me that makes it sound like just another MLM system.

Cryptocoin might crash at some point because of these issues.