This means cryptocurrency solves really nothing in it's current state
I agree with that summary. My whitepaper explains in more detail, what you have summarized.
, and things like physical silver coins as a currency would be vastly superior in terms of both decentralization and avoidance of usury or seigniorage fee.
Unfortunately that can't be the case because of Gresham's law and the fact that sheeple prefer the money with the stamp which is backed by military force, because sheeple want hassle-free money that is enforced by the State. Study 1000s of years of history.³⁸
Having said that, if you were to try and improve on cryptocurrency in some way, you would be required to remove the stake variable entirely. A system where you can't gain capital by leveraging assets on cruise control with no human intervention or attendance required. The only way to do that off the top of my head is either unprofitable PoW (which seems like it wouldn't work in practice) or by having all senders of transactions solve some type of decentralized captcha or other proof of work that cannot be put on cruise control for profit.
As you know, I have already
explained in my thread that unprofitable PoW (which was originally my idea) probably can't work. And you know I posit that my (not yet entirely published) whitepaper
has the design which you wish for.
Here is a relevant quote from my whitepaper:
This eliminates the Synchronous and Aliasing flaws because transacting is orthogonal to synchronization of the total order, while also ameliorating the ability of the majority control over the resources of the system (e.g. the stake in DPoS-like election in #4) to do Censorship and have a Monopoly on systemic income which is Debasing. The Wasteful flaw is eliminated because it is not necessary to employ PoW in order have unbounded participation of both [redacted] nodes and those who transact as the decentralized decision makers on enforcing convergence to a total order and disincentivizing malevolence.
³⁸ Shelby Moore III.
Value of currency has historically been public confidence in it as a reliable unit-of-exchange. Bitcointalk.org, Precious metals are not useful in a collapse scenario! thread, post #62, Nov 2, 2016.