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> The issue is that you need to lock up money for PoS in order to mine it. That has a cost as you are forgoing interest on lending that money to an actually pro
by xwvvvvwx 8y ago
> The issue is that you need to lock up money for PoS in order to mine it. That has a cost as you are forgoing interest on lending that money to an actually productive enterprise that is creating value.
You do realize that stakers in PoS earn interest (paid for through inflation) on their locked collateral?
- improv32 8y agoAs I understand it, they earn a larger share of the money supply, as interest. But not actual economic profit stemming from some productive wealth-creating investment. Except insofar as their support of the coin itself enables ecomonic activity.
- covemarkets 8y agoright, that's the main point. Why switch to POS at all? Suppose for a second ETH POS solution works as advertised. really fast and scalable. Then, there will be economic activity as a result of that speed and scalability, that would not have happened otherwise. At least that's the idea - may not ultimately work out.
- kiriakasis 8y ago> productive wealth-creating investment like hashing blocks? If you believe this is a critique of PoS then it must also be a critique of PoW