Recently, I had a chat with a friend who has bought a bunch of SHA256 ASIC Miners to mine Bitcoin. He was telling me how the price of these ASIC miners has doubled since he bought them, simply because the price of Bitcoin has doubled. He was then telling me that he's not very good at trading but when I told him that what he's done carries just as much risk as trading, since the price of the ASIC miners he's bought depends on the price of Bitcoin, he agreed! But the issue I have with traditional mining goes deeper than this.
In this article I'm going to argue right and left why the so-called Proof-of-Work concept is a misnomer. Work has always traditionally referred to human labor, not machine labor. When it comes to Proof-of-Work mining, you have machines working on behalf of their owners. The more machines you have, the more work you can do. And what does it take to have more machines? More stake! So in theory, it may be called Proof-of-Work but in practice, it's actually Proof-of-Stake. Because the more stake you have, the more machines you can afford, the more work you can do, and therefore, the more Bitcoins you can mine!
So I don't understand why "Proof-of-Work" advocates are so dead set against the Proof-of-Stake concept. I really don't get it. The only reason I can think of why they're so against Proof-of-Stake is because it threatens their stake. Their stake is in ASIC miners and they can use it to mine a lot of coins whereas with Proof-of-Stake concept, their stake has not much value anymore! Nobody wants or needs the hash power of the Bitcoin network to achieve what it's supposed to achieve, under the Proof-of-Stake concept. We can secure the network with Proof-of-Stake without wasting so much energy and encourage investors to invest in the underlying blockchain itself rather than ASIC miners.
What about the new investors? Would they be better off cashing into Proof-of-Stake coins or cashing into ASIC miners and then to Proof-of-Work coins? I think it depends on the Proof-of-Stake coin. Since if the coin they cash in ends up dying, then so does their stake. Whereas with cashing into ASIC miners, they can simply mine something else and their stake wouldn't die. But dying usually happens only if the coin is nothing more than a scam setup so if you do your due-diligence when it comes to Proof-of-Stake coins, and pick something that is not only not a scam setup, but also radically undervalued, then you'll be in the money in my opinion. You can also do half-half if you will to be safer. In other words, don't put all your eggs in one basket. Invest in ASIC miners, and mine Bitcoin. Pay the electricity and buy a Proof-of-Stake altcoin with the profits and then start mining that altcoin as well.
To read more about the superiority of the Proof-of-Stake concept over the Proof-of-Work concept, I would like to recommend you to have a look into the SwiftCash whitepaper. This is a project that I've been involved before its launch and I can personally vouch that it's not only not a scam setup, but also currently extremely undervalued with a marketcap of less than 100K USD! That means an average US citizen can buy the whole market by saving his annual salary in 2-3 years. Make sure you don't rush however when it comes to buying. It's so easy to spike this marketcap if demand picks up. Always try to buy as low as possible. This is not financial advice by the way so please do your own due-diligence in everything!
