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Only PoW cryptocurrencies can be fairly distributed and avoid wealth concentration (although many fail to do so by concentrating most of emission in just the fi
by tromp 5y ago
Only PoW cryptocurrencies can be fairly distributed and avoid wealth concentration (although many fail to do so by concentrating most of emission in just the first few years).
- tuesdayrain 5y agoFair distribution is not only completely subjective, but also meaningless. Given enough time, any valuable asset's distribution will be heavily concentrated in the hands of the rich.
- nybble41 5y ago> Given enough time, any valuable asset's distribution will be heavily concentrated in the hands of the rich. That reads like a tautology—they're called "the rich" because they have wealth, so naturally if you look at the distribution of assets most will be in the hands of the rich. One doesn't accumulate assets purely by being rich, however, as many a lottery winner can attest. Barring the occasional (and usually short-lived) windfall, for the most part those who attain wealth do so because they possess certain habits and preferences related to saving and investing. Even if you reset the distribution of wealth those tendencies would remain and bring about a gradual return to the original economic structure.
- pskiba 5y agoThis is not true, saturation points on staking pools exist to encourage people moving to other pools, this causes more decentralization not less. Additionally, from a hardware perspective setting up a pool takes significantly less capital compared to PoW mining.
- konschubert 5y agoNot true, you need capital to mine. Capital begets capital even on pow.
- dragonelite 5y agoPretty much that's why they say you need to let money work for you.
- nootropicat 5y agoThat's incorrect, especially in the context of bitcoin given how concentrated early emissions were, which you mentioned. A years-long ico, or incentives paid to users, would serve the same function but without economic waste. At the same time it's true that no l1 to date did that on any non-negligible scale, and starting now would take years.
- Paradigma11 5y agoYou are alluding to PoS i assume. I never really understood that argument. How is wealth getting concentrated when the relative distribution of coins stays exactly the same?
- tromp 5y agoBecause that relative distribution that is unchanged by staking is concentrated to begin with.
- Paradigma11 5y agoBut if those owners want to do anything with that capital they have to sell coins leading to more distribution. Plus you also have to pay taxes on staking income leading to more sales. But yes those shennanigans of many chain founders are certainly a problem.