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December 05, 2013, 03:54:07 PM |
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I'm genuinely trying to think about this, and based on it, I may buy PoS coins.
ALERT -- THIS'S NOT MY FINAL OPINION; I'M TRYING TO GET TO A CONCLUSION BY DISCUSSING IT WITH THE COMMUNITY.
This post will be updated based upon my findings.
Cryptocurrencies are not commodities. It's designed to be spent and a medium to receive payments from. If a cryptocurrency is not that, it's basically a pump and dump scheme.
Actually if you see for a fair cryptocurrency which is not seen as an investment, there should be a little bit inflation, cause that way people will not hold on to it like investment; instead they'll use it to buy investments like shares and gold -- which is something to be seen as an investment.
Proof of stake is not good for a cryptocurrency. Arguments --
It encourages holding the coins as investment, avoiding it's circulation, i.e. true use as a cryptocurrency. However if the profits proof of stake is giving you is negligible, then we may nullify this disadvantage.
Then you need to run a full node in order for the wallet to mine blocks based on PoS and it should be up always; how many people will do that? (especially when the interest rate is low)? When these coins will be made popular, 90% people will run paper wallets giving power to the hands of these 10%; thus an attack may not be that hard to do.
The block mined by a PoS may not have all the transactions --
What guarantees do you take that the person holding a large amount of coins and running a full node, keeping his wallet up and who has just generated a block has a good Internet connection so as to receive all the broadcasted transactions and include it in the block? These people are not experts, they've common stuff like firewall, anti-virus which may be up blocking the incoming transactions. This's unlike miners who usually have a good Internet connection and technical understanding.
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