Fiat Mining Versus Bitcoin Mining

If you’re anything like me, you’ve woke up wondering if the next 8 hours are worth the money, but you’ve already sunk your arse into several living expense obligations that you don’t have much choice but to haul ass to that computer or office and get to work. It’s always been a subconscious trigger in the back of my mind, and before Bitcoin, I could not articulate the feeling of motivation draining from me. 

Working a fiat job can be taxing at times, not all of us are fortunate enough to work in an industry that we are passionate about, and many of us work to survive and meet our various obligations. The fiat system tends to be more stick than carrot and the beatings will continue regardless of morale.

Believe me; I do not shy away from hard work, but when the unit of account you’re forced to be renumerated in and save in gets debased faster each year, your will to do specific tasks will wane over time. Imagine telling someone to do a task, but each year you’re going to pay them less and see how well they perform over that period. 

Fiat payment corrupts your will to work.

If the money is being debased faster than you can increase your salary, then at the end of each year, you’re forced to pocket those losses. Still, because people are so fixed with the nominal figure and not purchasing power, they allow themselves to be robbed. 

Some like myself have had a sinking feeling, the feeling of running faster to remain in the same place. 

All fiat currencies are engineered to go down in value, but with the premise that they will remain relative to everything else. A social contract has long been broken, and while people in the developing world are starting to wake up. Those living in developing nations have far less time to ignore their reality, as our time is worth far less each year due to faster debasement rates.

Bitcoin mining is for network security.

Bitcoin mining leverages electricity loads to secure the network; it actively pulls resources from the physical world. These resources are used to provide hashing power that secures each new block on the Bitcoin blockchain. 

As miners provide security and computational power for the network, they are rewarded with newly minted Bitcoin, known as the block subsidy, along with fees from the Bitcoin transactions secured in that specific block.

Fiat mining is for individual security.

Fiat mining leverages the real-world production of new goods and services that the world needs. When you go to work and create something of value, you bring more prosperity into the world. However, you’re only partially rewarded for your efforts since banks and governments are taking a piece of every transaction we make.

So, in reality, you’re not able to enjoy the full fruits of your labour. Still, with fiat mining, you can now secure today’s value on the most secure computer network on the planet, where you have the perfect surety of what’s going on with the supply of money. 

That value buys you a piece of the Bitcoin blockchain in the form of satoshis, and as the network continues to grow in value, so does the part of the network you own through your purchase of Bitcoin.

How fiat mining works in tandem with Bitcoin mining.

Since Bitcoin mining relies on electricity and infrastructure, many of these operations need to pay bills and salaries to keep running. Depending on how the mining operation is funded, they may need to sell Bitcoin to secure government currency to meet their fiat obligations. As a fiat miner, you’re helping provide the liquidity for Bitcoin miners to meet their fiat payments and keep their operations running. 

As a fiat miner, you provide a valuable service to the Bitcoin ecosystem, and you should rightly be rewarded for your service. I hope this brings you some level of motivation to keep going to your fiat job, securing those promises of potential Bitcoin and helping disperse the coins and growing the network.