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Whatever equipment you buy will lose it's value quickly, in 5+ years, it's probably worthless. And that's ignoring all the money you have to spend on electricit

Whatever equipment you buy will lose it's value quickly, in 5+ years, it's probably worthless. And that's ignoring all the money you have to spend on electricity, non-stop and increasingly. In PoW, if miners slow down, they'll become irrelevant. Even if you manage to acquire a 51% hash rate for example (which is extremely difficult), it'll be very difficult to keep it over a long enough period of time. PoS is fundamentally broken in my opinion, it literally says "rich gets richer" and wealthy stakers will get higher (absolute) rewards which they don't have any incentive to sell since they didn't spend any energy to get it. That's even ignoring all the custodians which have large quantities of the said crypto, so they can just keep the rewards to themselves or keep a sizeable % of it. One of the motivations for the DAO hack hardfork btw was that the attacker would hold significant power under a PoS system.

hanniabu 5y ago
So in other words only the rich can mine
- rawtxapp 5y ago
  You can participate in mining pools, but realistically speaking unless you have very powerful hardware, you're better off just buying Bitcoin outright. Same with PoS, you can stake with a pool if you have less than 32eth, but your returns on that are not going to be comparable to what large holders get (same percentage, but very tiny in absolute numbers).
  - wmf 5y ago
    You're arguing that "small" (<$80K) amounts of money aren't worth investing even at a very high APR. This is pretty contrary to most investment advice.
    - rawtxapp 5y ago
      I'm not, even small amounts should be invested of course, I'm just pointing out that rich benefit the most in either scenario. Also worth pointing out, high APRs aren't guaranteed and the network fees are supposed to be significantly decreased post EIP-1559. Also, for those who don't meet 32 eth threshold, there's good chance they are not even remotely close to that threshold.
      - CryptoPunk 5y ago
        If the rich get the same APR, they are not benefiting more from PoS. As for the 32 ETH threshold, if you don't meet it, you can stake through a pool instead, and even a decentralized pool.
  - rafale 5y ago
    The richer get richer in absolute terms but not necessarily in %. The latter imo counts more.

hanniabu 5y ago

So in other words only the rich can mine

rawtxapp 5y ago
You can participate in mining pools, but realistically speaking unless you have very powerful hardware, you're better off just buying Bitcoin outright. Same with PoS, you can stake with a pool if you have less than 32eth, but your returns on that are not going to be comparable to what large holders get (same percentage, but very tiny in absolute numbers).
- wmf 5y ago
  You're arguing that "small" (<$80K) amounts of money aren't worth investing even at a very high APR. This is pretty contrary to most investment advice.
  - rawtxapp 5y ago
    I'm not, even small amounts should be invested of course, I'm just pointing out that rich benefit the most in either scenario. Also worth pointing out, high APRs aren't guaranteed and the network fees are supposed to be significantly decreased post EIP-1559. Also, for those who don't meet 32 eth threshold, there's good chance they are not even remotely close to that threshold.
    - CryptoPunk 5y ago
      If the rich get the same APR, they are not benefiting more from PoS. As for the 32 ETH threshold, if you don't meet it, you can stake through a pool instead, and even a decentralized pool.
- rafale 5y ago
  The richer get richer in absolute terms but not necessarily in %. The latter imo counts more.