Post
Topic
Board Development & Technical Discussion
Merits 2 from 2 users
Re: [Megathread] The long-known PoW vs. PoS debate
by
LegendaryK
on 02/03/2022, 08:18:25 UTC
⭐ Merited by ETFbitcoin (1) ,Welsh (1)
Another issue with PoS is lack of commitment.

A PoW miner has to plan ahead, crunch numbers, prepare the operation, install ASICs and cooling, etc. and in the end they can't just dump their ASICs any time they want and buy it back later if they changed their mind. If someone starts mining something like bitcoin, specially with large operations, they commit to it. "In sickness and in health"!

In case of PoS they have no commitment whatsoever. They can buy the coins and become a big stakeholder with virtually one click and at any moment they can dump it and get out. For example if the PoS coin starts dumping they can sell it immediately effectively abandoning the coin.

Or to rephrase
Staking PoS is Versatile and fluid while mining PoW is rigid, and extremely wasteful. 

Example,
China Bans PoW mining or PoS staking

PoW miners face enormous costs and head aches in moving your PoW operation, not to mention the hardship of getting an industrial energy contract in the new country.
Takes weeks especially, if caught off guard about the ban.

PoS stakers can just move their laptop, or move their coins to a pool outside the country, at almost zero cost and within 2 hours all finished.

However if they wished, a PoS Staker can hide in any country and never be discovered since the energy efficiently hides them from all electric utilities.
PoW miners however, draw more power than residential use, and the electric utilities can pinpoint their location at a minute's notice.

Another example:
Say you are in the Ukraine, and a missile just destroyed your warehouse full of PoW mining ASICS.  You are officially now done and bankrupt.
However say your PoS Staking Laptop was destroyed.
PoS can go buy any cheap $500 laptop, restore their coins from their encrypted offsite backup and be back up and running in 12 hours.

In survival situations, those that are versatile and adaptable are better able to survive that those unwilling or unable to adapt to a changing environment.