Quote from: Getting doxed! on July 22, 2018, 03:06:58 AM

The problem with most POS coins is that they have no intrinsic value.

In Cloak's case there is also inflation with no incentive to secure the network. POS3, if implemented, should go some way to resolving this issue.

At least with POW coins the minimum value of the coins is linked to the energy cost associated with mining them.

I like Cloak but it won't take much effort for a better established, better funded PoW coin to clone Enigma and leave Cloak without a unique value proposition.

I hope this doesn't happen but I feel it is inevitable. Cloak will eventually become a victim of having good technology but being too small and slow to implement.

Intrinsic value is a very subjective term and is therefore meaningless. The fact that something cost money/effort to make, does not mean it gives it value by itself, it's only gives value because by what the market is willing to pay for it. If I would produce a car in a old, inefficient factory that would cost 100k USD to make, it does not mean that someone is willing to pay a minimum of 100k USD just because that is the cost of making it. Maybe another manudacturer can produce a better car for 50k USD in a more efficient factory. What would to market be willing to pay for a car? POS projects are a more efficient way of running a network and the fact that it cost less to operate them does not give them less value by itself. Not to forget that there are other aspects that can give value to an crypto asset, e.g. technology, utility, community involvement, innovation, adoption level etc.

Cloak in my view has a value because it uses the Enigma technology that no other crypto can offer. The dev team and community are very involved and committed. The thing that be improved is the adoption level, but i hope this will improve over time.