[Cryptography] Billions of dollars on the table, and other people are grabbing it.

jrzx jrzx at protonmail.ch
Thu Jan 14 21:24:09 EST 2021


A great many big crypto mining corporations are making a great deal of money, and a lot of big, smart, wealthy investors plausibly believe that investing in crypto mining is likely to be more profitable than investing in crypto currency, and speculating on crypto miners is likely to be more profitable than speculating on crypto currencies.

Proof of work is necessarily expensive, to resist the 51% attack, and tends to be slow *because* necessarily expensive.

The great advantage of a proof of stake currency, where the stake of a peer is the value on the blockdag owned by clients who have added transactions to the blockdag through that peer, is that the only way to profit from it will be to own a lot of it and sit on what you own - because it will be controlled by people who are doing that.

A proof of work currency is controlled by the miners, thus apt to be profitable for the miners, and correspondingly less profitable for hodlers. A proof of stake currency, if done right, should be controlled by hodlers, or rather controlled by the peers that the hodlers are using, since a hodler is seldom on the internet in his hodler identity.
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