Post
Topic
Board Announcements (Altcoins)
Re: [ANN][VRC] | VeriCoin | POS - NSDI | VeriBit | VeriSend | VeriSMS
by
ofp
on 16/07/2014, 01:38:02 UTC

PoS is like gravity though it really is a weak force that encourages centralization by rewarding people for hoarding coins.

What makes people hoard coins in not POS or even the staking payment (which btw is not interest payment, its built-in inflation). People hoard expecting either future appreciation of value or withdrawal security (meaning more money in the future or same money for sure).

so many people have used hoarding as one of the benefits of PoS... if people are being rewarded for staking they can't be dumping on exchanges the line goes.
if the reward for staking is too small then nobody would do it.. if nobody stakes then how does the coin function?

this is why I said its a weak force.. not something that forces people to do anything but surely it has to be a subtle form of encouragement.


Alphi, the quantity of coins in not changing (what changes is the conversion rate to btc or usd)...
So, the coins are always "owned" by someone and therefore staking in someone's wallet.
Staked doesn't necessarily mean hoarded. Huge difference!