Post
Topic
Board Bitcoin Discussion
Re: Annual 10% bitcoin dividends if mining were Proof-of-Stake
by
mgburks77
on 24/04/2014, 08:12:21 UTC
I would say that people who have a lot invested in mining activities may have a perspective that is subject to confirmation bias leading them to rationalize an inferior method because of their vested interest.

Why would you prefer having to have specialized equipment to produce new money? Squandering more and more electricity necessarily to secure a network is rent seeking exemplified, not productive behavior. Which is why that will only lead to centralization and cartelization as in the fiat world. This can be observed as mining is already controlled by two major cartels and most of the larger positions are held by financial institutions of one sort or another.

PoS is better all around.  It individualizes production of new coins which only helps fight the manipulation by mining and trading cartels that is the current situation. Not to mention the savings in overhead from power costs.  

Both are methods of achieving consensus so why use the expensive, difficult way unless it is because you already spent a lot on mining equipment and have a vested interest in that? I'd rather my position stake on an android tablet or something.

People all over the world have android phones and tablets, not everyone has a 10K mining rig or the means to ever get one.

Now which method of achieving consensus is more likely to be widely adopted? It's easy to see which way the wind is blowing.