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Doesn't PoS generate money out of thin air? It's just a matter of putting your dollars into stake vs hardware and electricity.
by twiceaday 9y ago
Doesn't PoS generate money out of thin air? It's just a matter of putting your dollars into stake vs hardware and electricity.
- JustAnotherPat 9y ago5% a year. You're better off keeping it on an exchange in case of a pump.
- coralreef 9y agoWhat's this 5% figure from?
- nosuchthing 9y agoOnly for the largest account holders, whom statistically will receive most of the newly generated money (and even more as they continue to accumulate newly printed PoS tokens).
- twiceaday 9y agoPoW distributes block rewards proportionally to hash power and these proceeds can be used to buy more hash power to achieve a compounding effect. From what I understand all of the viable PoS systems offer a fixed rate of return on the stake. This is like PoW forcing everybody to use the exact same hardware; a benefit to the little guy at the expense of the large account holders.
- aoeusnth1 9y agoI'm confused - what's your objection? Should capital put into PoS not provide a constant reward? Or are you under the impression that larger pools of capital provide disproportionate rewards?