Quote from: Dutchyyy on February 13, 2021, 09:59:54 PM

Quote from: tpacavalcante on February 13, 2021, 08:49:11 PM

What's up, guys!

Recently I came across an opinion that "only Proof of Work (PoW) coins are worth investing because they are the real sound money, backed in the energy consumed to mine them".

On the other hand, PoS coins are based on nothing, created out of the thin air, and generally have the problem of having high concentrations of the initial offer in the wallets of the founding institutions, developers and initial investors of the crypto project. For this reason, many are considered scams because they are only waiting for a market valuation to be able to offer the reserves they already have and make a profit.

I found the argument quite reasonable, although clearly radical. Personally I think that what defines the value of a crypto is its usefulness, its use case.

But I was really intrigued by the argument in favor of PoW coins, which in addition to their usefulness, would have their value defined by the cost of the energy used to mine it. That is why they could be considered a less risky crypto investment.

The criticism, moreover, of the high consumption of energy to mine the coins is answered with an ingenious argument that this would be a more efficient way to store energy (in the form of coin) that can be used indefinitely instead of being wasted as it happens to maintain the current financial system.

That said, I would like to know your opinion on this discussion. Does the argument in favor of PoW coins make any sense to you?

I would love to receive some reading recommendations (short, long texts, other threads on the subject) to deepen the topic.

Thank you.

Except for Bitcoin, I find POS coins to be more valuable. Even Ethereum is switching to POS.

POS is 'cleaner' than PoW, and staking creates scarcity that could lead to a price pump.

Whatever PoS algo is going to produce PoW can do the exact same thing, you talked about scarcity and it's same scarcity when mining difficulty rise up, I don't believe that ETH is switching to PoS soon, vitalik buterin must have understand the importance of PoW algo on ETH which is why he planned the EIP1559, the highest is both algos to co-exist