Major Problems in Crypto Currency

[lynn_402]

POS is easy to stake. while mining would be much harder down the road and not to mention expensive


take dogecoin for exmaple. can you mine it easy? if it were POS , you could buy 5 millions and sit there stake additional coins effortless.

Now everyone that owns coins are ultimately"mining" thus creating additional coins.

If that were the case, every dogecoin holders would do that, thus difficulty would be huge, so for 5 million doges you'd probably get like 50 doges/week. Selling pressure would not be worse than with mining.

[upekha]

enormous power consumption
is it because you pay your electricity bill in fiat ?

Its because the planet is already quite fucked up.

And negative aspects of mining includes not only the waste of electricity, but the quantity of electronic equipments that gets obsolete in less than a year.

Also, OP, you should consider adding the threat of 51% attack and mining centralization under PoW.

very true & done!

[upekha]

POS is easy to stake. while mining would be much harder down the road and not to mention expensive


take dogecoin for exmaple. can you mine it easy? if it were POS , you could buy 5 millions and sit there stake additional coins effortless.

mining: using your money to buy hardware & electricity, to generate more coins.
forging: using your money to buy coins, to generate more coins.

[lynn_402]

POS is easy to stake. while mining would be much harder down the road and not to mention expensive


take dogecoin for exmaple. can you mine it easy? if it were POS , you could buy 5 millions and sit there stake additional coins effortless.

mining: using your money to buy hardware & electricity, to generate more coins.
forging: using your money to buy coins, to generate more coins.

Had not thought of that before: PoS is quite good for the long-term valuation (better profit potential) of a currency, because those interested in it won't spend their money on electronic equipment, but on the coin itself. If all the money that had been spent mining bitcoins had been used to buy and stake the coin, its market cap would probably be in the tens of billions by now.

[cryptowho]

POS is easy to stake. while mining would be much harder down the road and not to mention expensive


take dogecoin for exmaple. can you mine it easy? if it were POS , you could buy 5 millions and sit there stake additional coins effortless.

mining: using your money to buy hardware & electricity, to generate more coins.
forging: using your money to buy coins, to generate more coins.

Had not thought of that before: PoS is quite good for the long-term valuation (better profit potential) of a currency, because those interested in it won't spend their money on electronic equipment, but on the coin itself. If all the money that had been spent mining bitcoins had been used to buy and stake the coin, its market cap would probably be in the tens of billions by now.

or it could be the opposite. which i am mentioning : )


imagine i have 5 million coins :

``````With POW level, if i sell any. i lose total coin amount. i no longer have 5 millions. i have to mine in POW to get the coins back to desired 5 millions. Or buy back.

``````With POS level , i can stake extra coins for basically free and sell those , while maintaining my desired 5 million quota.

 The ability to POSy creates anyone with POS stakes to sell pieces. while IN POw anyone who sells will most likely have to mine or buy back , therefore they will consider twice to sell any coins

[lynn_402]

or it could be the opposite. which i am mentioning : )


imagine i have 5 million coins :

``````With POW level, if i sell any. i lose total coin amount. i no longer have 5 millions. i have to mine in POW to get the coins back to desired 5 millions. Or buy back.

``````With POS level , i can stake extra coins for basically free and sell those , while maintaining my desired 5 million quota.

 The ability to POSy creates anyone with POS stakes to sell pieces. while IN POw anyone who sells will most likely have to mine or buy back , therefore they will consider twice to sell any coins

I'm not sure about other coins, but Peercoin's PoS reward is only 1%/year; if every holder sold only that small percentage, the price could only increase, don't you agree?

Also, people who mine through PoW have electricity bills to pay and must pay for new equipments, so they have some good reasons to sell their coins.

[cryptowho]

or it could be the opposite. which i am mentioning : )


imagine i have 5 million coins :

``````With POW level, if i sell any. i lose total coin amount. i no longer have 5 millions. i have to mine in POW to get the coins back to desired 5 millions. Or buy back.

``````With POS level , i can stake extra coins for basically free and sell those , while maintaining my desired 5 million quota.

 The ability to POSy creates anyone with POS stakes to sell pieces. while IN POw anyone who sells will most likely have to mine or buy back , therefore they will consider twice to sell any coins

I'm not sure about other coins, but Peercoin's PoS reward is only 1%/year; if every holder sold only that small percentage, the price could only increase, don't you agree?

Also, people who mine through PoW have electricity bills to pay and must pay for new equipments, so they have some good reasons to sell their coins.

it is clear that you are only discussing about peercoin and are trying hard to show POW is bad while POS is awesome.

but this is a general discussion and i would like to have all kinds of argument here and not a typical "my coin" is better plug.

i do not want to discuss why peercoin is good or bad. i want to discuss why POS and POW are good and bad

[lynn_402]

it is clear that you are only discussing about peercoin and are trying hard to show POW is bad while POS is awesome.

but this is a general discussion and i would like to have all kinds of argument here and not a typical "my coin" is better plug.

i do not want to discuss why peercoin is good or bad. i want to discuss why POS and POW are good and bad

I do believe it was relevant, since it shows that there are ways to mix PoW and PoS to reduce the impacts of both of these systems potential shortcomings. And I simply tried to argue against your criticism of PoS.

[Momimaus]

Indeed it is a big problem that money is wasted for equipment instead of buying coins.
Because the difficulty of the best coins is really high there is mined a lot of shitcoins. After that the miners are spamming all the threads because they want to push the price to sell their shitcoins.
Because of that we have a forum full of bullshit spam. When a newbie comes to the forum he is bombed by false arguments.
Thats keeps shitcoins alive a little bit longer, but the money is burned into pockets of scammers and cloners.

---> 1. Money wasted for mining equipment
---> 2. fals information distributing through parts of the communitie leads to bif loses for newbies.

[YarkoL]

- What are they? Are they currencies, designed to be spent, or are they commodities/valuables, designed to increase in value?
The two contradict each other.

IMO both aspects are there, but in BTC the currency side prevails.
In contrast all the altcoins are much more commodity-like.

I think it is an important distinction, because some people object to altcoins
on the grounds that there can only be one currency, and they invoke network
effect to bolster up their argument.

And of course they are right (Sorry Hayek...), but their premise that bitcoin and
altcoins are competing for the same space is a mistake. Even when an altcoin
pretends to be the bitcoin-beater, it still functions much more like a commodity.

However there is a yet another aspect of cryptocurrency that is gradually emerging, which
has been called decentralised autonomous organization. The coins are like stocks in
publicly traded company, everybody who contributes work for the organization gets compensated.
Bitcoin has been losing the decentralisation over time, whereas the newer community-oriented
altcoins seem to me much more DAO-like in spirit.

Continuing on the DAO trajectory will hopefully move altcoins farther from the dump/pump-commodity-mentality
and obsession with technical innovation towards more refined forms of social innovativiness. When the newer
"2.0" chains (NXT, XCP, Ethereum etc) mature enough we may start perceiving around us a fertile ecosystem of DAOs
with BTC as the universal currency and lingua franca of all the coins.    

[play4ce]

Distribution is by far the biggest issue I think.

[readysalted89]

I know there are already solutions to the enormous blockchain problem, like multibit's solution. The thing I don't like about the current solutions is they seem to be less secure than downloading the whole blockchain. I cannot find any other alternative that avoids massive downloads, but has the maximum security of blockchain downloading.