I've said it before and will do so again. PoS is a fundamentally different paradigm to PoW.
I agree... PoW is essentially: You do some work you get coins. PoS is essentially: you do nothing, if you have coins you get more coins.
and this is why I have such a fundamental problem with PoS because it guarantees that people will get something for nothing.
Not only does that break the laws of economics but it also breaks the laws of physics.
to put it another way in laymans terms.. Quite simply PoS is the rich getting richer and the poor getting poorer. Landowners reaping all the rewards while the peasants who work the land get very little.
that system of serfdom was flawed in Medieval times and it is just as flawed today.
This is why I have a philosophical problem with PoS.
And no that doesn't make me a communist just because I believe that people should be rewarded fairly and equaly for their work. PoW is exactly how a free market system should work. If you subscribe to free market principles then you should believe that everyone has a free and equal chance to generate wealth purely on the basis of how much work they are able to do and how efficiently they can do it. this is the Proof of work system.
the problem with today generation is (and I'm not even that old), that they have a sense of entitlement that everything should be handed to them based on who got there first. this is PoS which I like to call POS.
"My grand daddy found this land and stole it from Injuns so everything you dig up on this land is MINE..." lolzOT: Alphi, as you have argued several times against any sort of price manipulation, I'd be interested to hear your thoughts on Nautiluscoin. Seems a big part of their plan is a fund to stabilize the market value and the coin is founded by a financial expert with lots of experience in the field. Do you also think their plan is illegal?
this also goes back to free market principles and creating a level playing field for all participants, be they miners, traders or users.
the reason why I bring up the question of legality here is because most of us (and I do acknowledge not all of us) live within the Anglo Sphere or what some people might call "The West" and by living where we do, most of us unfortunately are forced to abide by rules and laws which are mostly dictated by the USA. (you can read up on how the US uses trade pacts to push their laws onto other countries, but that's how it is)
with that being said.. I cant comment on Nautiluscoin because I don't know about it.. but I can say this much.
Funds themselves aren't illegal. It is how they are used that determines whether they are legal or not. Holding Karma the way Karma Shares does and investing it into projects to build products and services which grow the Karma economy clearly is not illegal. However if someone at KarmaShares for example was using those funds to trade on open markets and try and game the system by selling when he puts out fake positive news and then buying when he puts out fake negative news then he could potentially get himself into some very serious legal problems.. (and i'm not saying that would happen this is just an example)
Fake buy walls and sell walls are essentially the same thing as putting out fake news and that's what makes them illegal
you can read more about market manipulation here.
http://en.wikipedia.org/wiki/Market_manipulation
http://www.investopedia.com/terms/m/manipulation.asp
and yes I know people may argue that these rules only govern SEC registered securities.. but no they actually don't.
The SEC covers both Securities and Investments. Investments being anything that people put their money into in the hopes of getting a financial return. So it doesn't matter whether its Cryptocoins, trading cards, or apple trees, if people put hard earned money into a scheme like Karma expecting to get some kind of return and then end up losing a bunch of it due to the being ripped off in some way.. then the SEC can and probably will get involved.
(It's the SEC in the USA but every country in the Anglo-sphere I mentioned has similar governing bodies. Also the US authorities get involved wherever enough US citizens have been ripped off regardless of what country the investment scheme is located in)
Anyways sorry for the long post I might read up on nautilus later on and see what they are actually doing before I comment more as Market stabilization is not the same thing as Price Manipulation/Fixing. I usually just post the kind of advisories that I do because I've been investing for many years and I don't want to see people going to jail for doing stupid things and thinking that they are operating in a legal grey area outside the laws of their country.
It think with Karma we need to be more ethical and keep our noses cleaner than most.. because without this unique selling point and community there really is little difference between Karma and all the other Me2 litecoin clones out there.
