-Proof of Stake would help secure the network and protect from forks (like the one that happened).
-It would encourage people to hold their coins to earn stake reward and take those coins off the market. Usually this has a very very positive effect on price as has been the case for most PoS coins. (clam-rby-etc..)
-It would make whales much more interested in being involved due to not worrying about endless inflation from PoW mining.
-PoW coins are very hard to raise the price on and keep the price up due to daily mining dumps and lack of investor interest. See coinmarketcap.com for top 50 coins that are PoS, not mined, near fully mined.
-PoS inflation could be 5-10 percent a year whereas PoW inflation (3 percent per MONTH - 36 per year) dumps .125 btc a day to the order book. At 1 million dollar market cap that would be 2.5 btc per DAY.
-Generally miners will be pro PoW since that is their income (mine and sell daily) and PoS will appeal more to investors who want the value of a coin to rise and preserve that value as an asset.
-PoS is perfect for a coin that is connected to a service like this trading software. It will make it much more appealing to hold while using the bot instead of worrying about high inflation lowering price.
PoW is like endless printing of shares of a company -- PoW is more like an actual investment
(BTC exception granted
)
etc...etc...etc...
Thanks for your reply. Currently I'm not a fan of Proof of Stake (PoS). Please keep in mind that there are many PoS coins that failed.
Addressing your points:
1. Blockchain forks rarely happen and usually are resolved (longest chain rule) within short time. Mining can secure the network as well.
2. Stake reward for holding is a good argument.
3. 'whales much more interested' Your argument is flawed. Inflation comes from the number of coins generated each day. It does not matter whether the coins are generated by Proof of Stake or by Proof of Work (mining). It will be the same number of coins generated each day. The difference is that miners have higher electricity costs and miners sell some of their mined coins to cover the cost of mining. This leads to more supply and pressure on the price. Without the price pressure the developer can sit back doing nothing. The price pressure motivates the developer to continue with the development of the coin because development increases the value of the coins that the developer holds.
4. People will get more interested in Quatloo if Markus develops a software that is useful and functional. Also it would help if he improves the advertising of Quatloo.
5. There were security concerns for PoS.
6. I'm concerned that a pure Proof of Stake system is unfair for small holders. Whales would get too much without contributing to the coin or the development.
7. Development and improvement should be the main drivers to make the Software more valuable.
That's why I would prefer Proof of Work for Quatloo.
