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PoS pays the people who run the infrastructure. Someone has to run it, and it's trivial for anyone to participate. If you have 5 dollars you can stake it in the

by px43 4y ago

PoS pays the people who run the infrastructure. Someone has to run it, and it's trivial for anyone to participate. If you have 5 dollars you can stake it in the PoS network and earn rewards. The barrier for entry in the legacy financial system is way way higher. Have you ever applied for a banking license?

sterlind 4y ago
you have to have 32 ETH, which is around $50K USD, but agreed other than that.
- px43 4y ago
  You need 32 ETH to run your own staking node, but there are many options for liquid staking, which can be done with any denomination of ETH.
- sudhirj 4y ago
  Pooling should be possible, same as mining earlier. Collect ETH from a bunch of people and split the gains by ratio.
shadowgovt 4y ago
[edit: misunderstood the initial statement; disregard the part that was previously here] > The barrier for entry in the legacy financial system is way way higher. Have you ever applied for a banking license? One doesn't have to have a banking license to use the local fiat currency of one's nation (basically, one is born into it). And one must do almost nothing to get a check from the government if they decide to stimulate the economy by handing out money to those who showed they had very little on their last tax return.
- px43 4y ago
  You don't need to be a staker to use Ethereum either. You can also stake with a few clicks on a website if you're using a web3 capable browser. You don't need to buy anything fancy or even open up a terminal if you don't want to. If you're into UBI type stuff, yeah, there are multiple UBI projects on Ethereum https://www.proofofhumanity.id https://www.proofofhumanity.id There are a ton of other projects that allow people to share storage space, compute, art, information, etc to earn cryptocurrencies. People contribute what they can to the network, and are compensated for their efforts. Projects like gitcoin are raising millions of dollars for people who volunteer to provide public goods, from performing security audits on large open source projects, to cleaning plastic out of rivers (https://gitcoin.co/grants/ https://gitcoin.co/grants/). Seems to me like the Ethereum ecosystem is far more altruistic than many current governments.
dmarcos 4y ago
Yep. Parking your ETH in a staking pool much better than in a traditional bank saving accounts. There’s a proliferation of services that make it easier and easier and can put any amount.
- spywaregorilla 4y ago
  My bank account didn't drop 63% YTD though
  - NotYourLawyer 4y ago
    Or 100% when it got hacked.
  - kelseyfrog 4y ago
    My loss, I guess
  - calculatte 4y ago
    1 ETH = 1 ETH still.
    - blep_ 4y ago
      The numbers are irrelevant over time. Can you buy the same things for 1 ETH now as you could then?
      - kodyo 4y ago
        Dollars have similar problems, for more depraved reasons.
      - calculatte 4y ago
        That all depends on the time points you are comparing to. 1 ETH now is $1400. 3 years ago it was $180. Can you buy the same things for 1 USD as you could then? (no)
        4y ago
candiddevmike 4y ago
How will PoS not deflate the currency to zero? Why would you spend eth at all when you can make more money holding it via guaranteed returns?
- Drakim 4y ago
  Couldn't somebody ask the same about getting interest rate on their savings? Why spend money when you can use the money to grow more money?
- deleted 4y ago
  [deleted]
BbzzbB 4y ago
False equivalence, why is your equivalent to staking (investing crypto) applying for a banking license rather than opening a brokerage account (investing dollars)? With the advent of fractional shares anyone can buy $5 of stocks too, but it requires zero technical know-how.
- nightski 4y ago
  When you stake, you are still processing transactions and creating blocks/forming consensus similar to what mining did. This isn't really comparable to investing in a security. Just because you can join a staking pool which often takes a cut and makes it easy doesn't invalidate what is actually going on.
  - BbzzbB 4y ago
    Sending $5 to a third party pool so they stake it in your stead under the promise it remains your $5 does not make you a bank. It's more like sending $5 to Robinhood so they buy $BAC in your stead under the (legally backed up) promise it remains your $5. IMO.
    - nightski 4y ago
      That’s not really staking. It’s just lending your eth to a staker which is completely different.
      - BbzzbB 4y ago
        Maybe I am misunderstanding what "staking" $5 means then, because I believe you need 32 ETH to be a validator.
belltaco 4y ago
>PoS pays the people who run the infrastructure Both Ethereum's and Bitcoin's regular nodes don't make any money.
jsemrau 4y ago
You are conflating several topics. (Background: through Ternary we run the Red Bike validator nodes on Cardano). 1. If you want to run a validator node, i.e. run the architecture you need to have 32 ETH to be eligible to provide this service. And it does not mean immediately that you will earn something. https://ethereum.org/en/staking/ https://ethereum.org/en/staking/ 2. If I stake the equivalent of 5 USD I will likely get a 5% return on it per year making it much less interesting from an investment perspective given volatility and opportunity cost. 3. Staked funds are locked and can't be used anywhere else or for anything else. At least GPUs can be used for mining AND general purpose computing. 4. It is much easier to go to any random money exchanger and go USD/EUR or USD/JPY 5. Getting a retail bank account can be done in a matter of minutes online.

by px43 4y ago

sterlind 4y ago

you have to have 32 ETH, which is around $50K USD, but agreed other than that.

px43 4y ago
You need 32 ETH to run your own staking node, but there are many options for liquid staking, which can be done with any denomination of ETH.
sudhirj 4y ago
Pooling should be possible, same as mining earlier. Collect ETH from a bunch of people and split the gains by ratio.

shadowgovt 4y ago

[edit: misunderstood the initial statement; disregard the part that was previously here] > The barrier for entry in the legacy financial system is way way higher. Have you ever applied for a banking license? One doesn't have to have a banking license to use the local fiat currency of one's nation (basically, one is born into it). And one must do almost nothing to get a check from the government if they decide to stimulate the economy by handing out money to those who showed they had very little on their last tax return.

px43 4y ago
You don't need to be a staker to use Ethereum either. You can also stake with a few clicks on a website if you're using a web3 capable browser. You don't need to buy anything fancy or even open up a terminal if you don't want to. If you're into UBI type stuff, yeah, there are multiple UBI projects on Ethereum https://www.proofofhumanity.id https://www.proofofhumanity.id There are a ton of other projects that allow people to share storage space, compute, art, information, etc to earn cryptocurrencies. People contribute what they can to the network, and are compensated for their efforts. Projects like gitcoin are raising millions of dollars for people who volunteer to provide public goods, from performing security audits on large open source projects, to cleaning plastic out of rivers (https://gitcoin.co/grants/ https://gitcoin.co/grants/). Seems to me like the Ethereum ecosystem is far more altruistic than many current governments.

dmarcos 4y ago

Yep. Parking your ETH in a staking pool much better than in a traditional bank saving accounts. There’s a proliferation of services that make it easier and easier and can put any amount.

spywaregorilla 4y ago
My bank account didn't drop 63% YTD though
- NotYourLawyer 4y ago
  Or 100% when it got hacked.
- kelseyfrog 4y ago
  My loss, I guess
- calculatte 4y ago
  1 ETH = 1 ETH still.
  - blep_ 4y ago
    The numbers are irrelevant over time. Can you buy the same things for 1 ETH now as you could then?
    - kodyo 4y ago
      Dollars have similar problems, for more depraved reasons.
    - calculatte 4y ago
      That all depends on the time points you are comparing to. 1 ETH now is $1400. 3 years ago it was $180. Can you buy the same things for 1 USD as you could then? (no)
      - 4y ago

candiddevmike 4y ago

How will PoS not deflate the currency to zero? Why would you spend eth at all when you can make more money holding it via guaranteed returns?

Drakim 4y ago
Couldn't somebody ask the same about getting interest rate on their savings? Why spend money when you can use the money to grow more money?
deleted 4y ago
[deleted]

BbzzbB 4y ago

False equivalence, why is your equivalent to staking (investing crypto) applying for a banking license rather than opening a brokerage account (investing dollars)? With the advent of fractional shares anyone can buy $5 of stocks too, but it requires zero technical know-how.

nightski 4y ago
When you stake, you are still processing transactions and creating blocks/forming consensus similar to what mining did. This isn't really comparable to investing in a security. Just because you can join a staking pool which often takes a cut and makes it easy doesn't invalidate what is actually going on.
- BbzzbB 4y ago
  Sending $5 to a third party pool so they stake it in your stead under the promise it remains your $5 does not make you a bank. It's more like sending $5 to Robinhood so they buy $BAC in your stead under the (legally backed up) promise it remains your $5. IMO.
  - nightski 4y ago
    That’s not really staking. It’s just lending your eth to a staker which is completely different.
    - BbzzbB 4y ago
      Maybe I am misunderstanding what "staking" $5 means then, because I believe you need 32 ETH to be a validator.

belltaco 4y ago

>PoS pays the people who run the infrastructure Both Ethereum's and Bitcoin's regular nodes don't make any money.

jsemrau 4y ago

You are conflating several topics. (Background: through Ternary we run the Red Bike validator nodes on Cardano). 1. If you want to run a validator node, i.e. run the architecture you need to have 32 ETH to be eligible to provide this service. And it does not mean immediately that you will earn something. https://ethereum.org/en/staking/ https://ethereum.org/en/staking/ 2. If I stake the equivalent of 5 USD I will likely get a 5% return on it per year making it much less interesting from an investment perspective given volatility and opportunity cost. 3. Staked funds are locked and can't be used anywhere else or for anything else. At least GPUs can be used for mining AND general purpose computing. 4. It is much easier to go to any random money exchanger and go USD/EUR or USD/JPY 5. Getting a retail bank account can be done in a matter of minutes online.