Post
Topic
Board Bitcoin Discussion
Re: Annual 10% bitcoin dividends if mining were Proof-of-Stake
by
SlipperySlope
on 24/04/2014, 04:32:51 UTC
Proof of Stake is socialist.  It creates money out of thin air without working for it.  Like a bank.

The important part of your argument is the creation of money out of thin air - so to speak. Satoshi put rewards into the network to motivate miners. Proof-of-Stake is exactly like the current Bitcoin system except that you get your fair share of the block rewards as a 10% average annual dividend, instead of those same rewards getting wasted in someone else's datacenter. You are the miner. But the genius of Proof-of-Stake is that it can be performed on an ordinary computer as long as you help process transactions and maintain the blockchain.

Proof-of-Work is bizarre. It is sort of like a bank burning their notes in a moat to keep robbers out.