Remember basic Physics you can not create something for nothing
There is no better promise than Energy because everyone needs it, wants it and i will never have any problem selling it as it is universally recognised. To create a Proof of Work (PoW) coin you need x amount of energy and you can not cheat. A Proof that work has been done. Right now it costs $600 Dollar to generate a Bitcoin, someone has done $600 Dollars worth of work, thats a promise. If someone has done $600 dollar worth of honest work for you, are you going to pay him? If a miner sells below cost he will not be a miner for long, if the profit is huge others will join. I don't need to be Einstein to figure out if a Bitcoin sells for $1000 and i can produce it for $600 i will produce.
Not only the electric used to mine it is also the production of the chips, the engineers designing the chip of the algo........
Litecoin is a backup of your real money just like you back up your wallet. It is gross negligence to have no backup. In case something drastic happens it's something of fall back onto, basically a insurance policy. It will always lag bitcoin, thats a fact.
Gold and Silver is real money too, but it is awkward to give change, awkward to carry, awkward to store, awkward to sent.....awkward
Everyone knows the fiat fake money and now is a new contender in town, PoS the little cousin.
PoS only has value because of Bitcoin otherwise no one would buy it to it and there would be a fair chance the PoS
pyramid scheme would be
outlawed. After all the interest payment must come from somewhere, yes the bigger fool until it collapses.
Some of us going to have a free lunch now, want to come along?
It does not matter the style of initial distribution we use, the scam nxt or Blackcoins or any other the changes are only cosmetic and the end result is the same. For the heck of it let's use the nxt style
1. Create a anonymous account on a forum.
2. Announce to creation of a new coin and ask willing participants to sent a few satoshies worth of bitcoins, not to much we dont want to scam you of the real money, just enough so we can sent you your stake when ready.
3. Tell your friends, family....... to create numerous anonymous accounts on the forum and sent up to the maximum 1 bitcoin tell em to sent lots it is worth while and as they know you, the will. Now create several anonymous accounts yourself and sent bitcoins to yourself too. You and your friends have a total of 15 bitcoins sent and the others who have sent some "dust" did sent .15 of a bitcoin combined.
4. Now create the coin and sent everyone the millions of the new coin disrupted according to the bitcoins (satoshi's) sent
5. Start buying the coins of the early "investors" who have sent real money (bitcoin) to an aon on the internet. Yourself and your mates hold thigh so very soon the price rises and for the 100 million coins or so you sent to the early adaptors there is a real scramble. Soon the early "investors" can show massive gains and buy more and tell there friends also about this great staking
game coin. An ever greater demand for the original token payments "dust" is happening and more and more money is flowing in.
6. Some time has past and you have long ago recouped 1000 fold your bitcoins sent to yourself and cash out regularly as more and more new money flows in and you control 99% of available coins are the
puppet-master and in full control of the market.
Some one else realizes this and starts his one coin. He has a bigger budget to play with, can create a better website, change a few parameters and very soon the coin takes of too as some sheep now follow it too, just in case.
An even bigger player follows the 6 steps above to create his coin with a fixed limited number to stake with.
Some time passes, lots of new staking coins created all limited editions, of the endless created PoS coins.
At some stage Microsoft or any other large player deceits it too will find use for another few millions in the bank account and follows the 6 steps above and when it cashes out will leave an even bigger number of bag holders behind.
Next in line is the FED, whoha what a blockbuster the best staking coin ever, the pump phenomenal, gona have to jump on that train before it leaves.
"BCNext" yeh we will follow you loyally.
By no means must you be a big player to enter this game. If you make enough noise in you neighbourhood you too will find fools who part with money easy, geed will make sure of it just throw in the burley and fish will bite.
Unlike PoW
in PoS it does not matter when you start your money for nothing enterprise (creation of Proof of Stake coin), however it is to assume that sooner and not later the fools have run out of real money drying to have a stake in every new coin coming to market, because "just in case". Coins claiming to pay x interest can only to so when a bigger fool enters after all it has to come from somewhere.
All the best claiming your stake of nothingness.
The proper meaning for PoS is Proof of Scam (Po$) alternatively Proof of Stupidity .
Inflation, among many other things stops new PoW coins in its tracks unless it cheats in some way to overcome it and it must be at the expense of something.
The key element is how much hash power can any coin produce in the very very long term.(What is the block reward of a given coin in 50 years time). Investors (not the local gambler) will invest in a coin as long as they see growed, the coin needs a decent block reward for a long time to come.
It all started in another tread with the question is PoS dead? The answer is, it is a stillbirth.
Edit:
According to coindesk it cost $597.23 to make a Bitcoin
http://www.coindesk.com/microscope-economic-environmental-costs-bitcoin-mining/ my view is that this is a silly perspective aimed at devaluing the demand for POS coins. encryption provides value, and nothing supports that statement more than the current demand for anon transaction technologies in coins.. all of which have enjoyed massive growth in short spaces of time and endured with stable pricing as well at much higher price points. competitor coins without POS cant say the same. and after all.. investors only care about profit. if they can generate POS blocks on an encrypted network then the encryption itself provides value for the coin but also give them the added benefit of storing for themselves a sort of savings bank account at home. A Safe that grows money through generating interest on investment! this is a fantastic incentive for investment and everyone i think knows it. added to that, POS networks provide much greater transaction speeds and this is also highly demanded as im sure, many like myself.. absolutely LOATHE bitcoin transaction times. which can take ridiculously long.. sometimes more than an hour to get a transaction confirmed.
I am yet to see a legitimate argument against POS technology. all are theoretical and can be classed as FUD in my view.
ill await a response from those who believe in these theoretical exploits against POS networks and a reason why encryption cannot also provide value for a network besides the consumption of energy.
