A Ponzi scheme is a fraudulent investment operation where the operator generates returns for older investors through revenue paid by new investors, rather than from legitimate business activities or profit of financial trading
In a real Ponzi Scheme, only the operator knows he is paying the old investors directly from the new investors.
In All Coins , there is no single operator in control of all the coins unless you entered into an ICO.
Easy Fix , don't buy ico coins.
PoW Wallets don't really do much at all except confirm transactions.
All of the real work is done by the mining equipment so you don't notice it , if you are not a miner.
PoS Wallets on the other hand are doing the mining/staking and competing , so they draw more resources than pow wallets.
Lesson in economics:
If a PoS coin inflation rate is too high, it can only sustain a specific price per coin until the excess that is placed on the markets because of the increasing supply decreases the price per coin.
It happens over and over again, and if you get in early enough you can make a quick profit before the price begins its eventual downfall. This has to happen because a PoS coin paids interest, and when it pays out interest the price is only sustained if the influx of capital is high enough to maintain it.
Over time as the influx of capital decreases , it begins dividing the marketcap now fixed price by the ever increasing coin amounts, so you see a constant lowering in price per coin.
And why does this keep happening,
Two reasons
1. Human Nature
When you get a 100% earning in a week , you think it is a great .
The Truth is that high % will always decrease your price per coin, but since you receive more coins you think it should earn you more.
2. A Few People do make money with high interest coins, but they get in very early and milk it with every staking, by selling all of their interest and holding their principle.
@
ZEITWe have seen these issues and fixed them by moving to an Ultra Low Inflation rate of only .0005% per year.
Meaning we make less than 500 coins per day.
So over time our price per coin will grow as our utility usage increases.
So here are your options
If you choose high interest rates, you have to get in early , and you sell your excess as fast as you earn them , realizing it price per coin will drop to nothing. The higher the % the faster & more devastating the drops in price.
or
Choose
ZEIT where the price per coin will grow slowly over time.
Reasons why PoW is doomed
PoW input cost to maintain a PoW coin is in the Millions per months
Warehouses full of ASICS, that require enormous amount of electricity.
Some areas are already starting to ban PoW mining operations, as the drain on their electrical infrastructure is too high.
PoS as a consensus method is superior to PoW in the following.
PoS Input costs to maintain a PoS network is less than $1000 per month.
The PoS coins can have the same or higher transaction capacity than the PoW coin with no additional strain on the energy grid.
Main point is PoW is unsustainable and wasteful and PoS can provide the same services for a fraction of the monthly costs. And in the end that is all that will matter.
If you want a sustainable PoS Coin Network that price per coin only grows verses facing the inflation drops.
ZEIT is your only choice.
FYI:
Take any coin PoS or PoW and calculate its # of new coins created per day.
Then multiply those new coins X its current price per coin.
Once you have that daily price to hold off inflation damage, you can decide for yourself if you believe that coin can maintain that influx of capital over a week , a month , or a year.
