The OP here is right. Sorry to resurrect this thread but I have been grappling with this for quite some time. what brought me to post, and what angered me the most, was PIVX and the multitude of early adopters who, got in early, took a price rise, and now enjoying staking benefits. Let me tell you why I am annoyed. I will say that I am an investor of sorts; I have a nice array of GPUs that mine for me daily and enjoy excellent rewards, even with the high cost of electricity in my locality.
1. Early adopters are the only winners in POS coins.
- With PIVX, the early adopters took enough coins to stake and to hit up the master nodes. So they now enjoy excellent rewards at an entry point that reduced their risk. If you open the PIVX staking calculator now, you will notice a VERY startling fact, both for investors and the future security of the coin. This was before halving; A stake equivalent of $150,000USD would earn approximately $1400USD per month in equivalent PIVX. There is no investor alive stupid enough to dump that sort of scratch into such a high risk project and earn such crappy interest.
2. If the entry gate is too hard to squeeze through and there is no incentive to stake because of the fact listed above, who will secure the network in the future when early adopters profit take?
- I have no idea who will. There is no investor alive that would agree to such a proposition. You might earn less in capital appreciation of a piece of land or property, but the backing is tied in the land and the bricks. Not a new digital currency.
3. Your coins are hostage for residual income and/or ROI.
- Says it all. Artificial price boosting by forcing coins to remain on the network, does not good investment make.The big bad wolf of downward mining pressure is always seen as a bad thing, but it is an honest account of liquidity.
4. Scream all you want, there is NOTHING AT STAKE.
- Called a fruitless argument, though there is still merit to it. In almost all capital mediums on Earth in our modern economy, there is value added to the ledger itself through other means. I build you a table, I put work into building it. The Table has inherent value. I mine a coin at a certain cost, the coin has inherent value as it was an equal exchange of real world resources. Essentially your investment into PIVX was no more than investing in a Zero Value line in a database.
Bleeding hearts, bleeding hearts; electricity is a worry? When the coin reaches a huge marketcap the electricity use becomes the most efficient and the hashing power becomes the most secure than any other system in existence today.
Bit of a flame; may cry babies get upset because they are unable to earn mining equivalent rewards because they do not want to fork out the EFFORT and MONEY to buy equipment. Instead they want rewards at no effort, which is only really achieved in hitting up and gambling on an ICO. After prices rise, the rewards become crap for new investors. Wake up to yourselves.