"From what I've understood the rig doesn't matter. What matters is how many coins you have in your wallet. And unless you have millions I don't think you will be forging much of anything. Please correct me if I'm wrong.

I agree that mining coins wastes of a lot of energy (Proof of work algorithms) but how does rewarding the rich for being rich (Proof of stake algorithms) make any sense at all?

An early adopter or developer that owns a huge percentage of a POS coin will be getting paid more and more for doing nothing. In POW an early adopter gets richer only if the coin actually raises in value and once he spends the coins they are gone. In POS they just keep generating more out of thin air. That is just ridiculous.


Obviously investing in a successful POS coin would me much more beneficial for ME than investing in a successful POW coin. The problem is that it won't be beneficial for others. It's just not a good way of distributing value.

For example lets say you managed to mine or buy a 1% position in POWcoin in the first month. Lets say this coin was successful and price and hashrate increased significantly after that. In order to maintain that 1% position you would have to spend ever greater amounts of money on either mining power or through direct purchasing of the coin to maintain that 1% position. If not then your position would continue to get diluted and it isn't a bad thing. For a currency to function it needs widespread adoption.

Now with POScoin you acquire a 1% position in the coin the first month and basically have to do nothing to maintain that position in the future except not sell.

In the future when BTC prices would stabilize every coin I spent would be gone. If I want to make 1 coin back I'm going to have to provide value to other people in society for them to pay me it.
With NXT I don't have to provide anything at all. I basically get paid for being rich. I can just spend the extra coins that I generate from being rich and never lose my wealth despite that fact that I am a parasite to society and offer NOTHING back. Kind of like royalty, a birthright to be rich.


What initially brought me into cryptos was the possibility of making a monetary profit. What kept me in cryptos was the realization that it can offer humanity much more. You post articles and videos of people like Andreas M. Antonopoulos all the time so you are already know what I'm talking about. I'm interested in the technology as a whole. The possibility of having aspects of society run algorithmically instead of legally. That is why it is of great importance for the underlying algorithms to represent the best social values that they can.

I didn't say the situation will get worse for those holding only a few bitcoins. I said that all people holding bitcoins won't preserve their current percentage of the coins in circulation and that is a good thing. They won't be rewarded just for owning coins either and that is also a good thing.

It seems to me that the distribution of wealth in a bitcoin economy can be altered much more easily in comparison to a 100% PoS coin economy simply because of the fact that spent coins do not somehow reappear in the wallet of the spender just because he happens to own a lot of coins.

One huge thing that bitcoin has going for it is that it is already very well established.
For now I'm waiting to see what new technologies will be layered over the current bitcoin network and what effects they will have on the bitcoin ecosystem. I just don't see a pure POS algo as being an improvement as far as social organization is concerned. In fact it seems like quite the opposite."

From a discussion in my FB page (I quote the other guy).
What are your thoughts?