EE380 Talk

David Rosenthal: “Because miners’ opex and capex costs cannot be paid in the blockchain’s cryptocurrency, exchanges are required to enable the rewards for mining to be converted into fiat currency to pay these costs. Someone needs to be on the other side of these sell orders. The only reason to be on the buy side of these orders is the belief that ‘number go up’. Thus the exchanges need to attract speculators in order to perform their function.”