Post
Topic
Board Altcoin Discussion
Re: DECENTRALIZED crypto currency (including Bitcoin) is a delusion (any solutions?)
by
Come-from-Beyond
on 11/01/2016, 14:05:46 UTC
Added another flaw to PoS:

  • PoS usually pays dividends to stake holders (and even relays a percentage to the developers thus must register as a Money Transmitter with FinCIN) thus arguably creating investment securities under the Howey test and thus must be registered with the SEC or face possible jail time

[3]
The other flaw of PoS, and especially DPOS and Dash masternodes (as pointed out by smooth et al) is you are paying yourselves via the shares from an enterprise that issued unregistered investment securities and which also requires each stakeholder to register as a money transmitter with FinCIN. I can't fathom how you convinced yourself that you are not going to jail in the future or end having to lick the boots of the SEC as Erik Voorhees did to wiggle out of jail time.

This is not a flaw, otherwise you have to accept that decentralized cryptocurrencies are impossible just because in the future USA can declare them illegal.