But that's one of the problems with PoS, it promotes hoarding and kills activity. Less activity leads to less adoption which leads to price decline.
Marketcap isn't everything, it's merely a snapshot of how much people are willing to pay for a coin and can change rather quickly.
It's too early to judge that PoS kills activity. Quite the opposite: In Nxt, numbers of transactions per day steadily increased since July until today (around 3k per day now, which is not a lot compared to bitcoin, but still).
I agree it's too early to make a judgement based on comparing any 2 coins. But you don't need empirical data to discuss differences between PoS/PoW designs. You only need common sense for that.
NXT is probably not the best example in this case. Since it's non-inflationary, the only income you get is your share in tx fees (afaik), which atm are very insignificant. Therefore from the average holder's point of view - it's probably better to use it and keep it alive.
Now what would happen if we switch BTC to PoS (with the same issuance model)? You think it would increase activity? You have @micky123 above saying he would stop investing. I know I wouldn't be keen on buying a coffee with my PoS coins and wouldn't touch my stash to tip or donate.
If your coins generate you more coins - you don't want to spend them. Simple.
Right now you have bitcoin hoarders, who (despite all the logic) wouldn't use their coins at all. If they're further incentivised to hoard - why would they change their approach?
Stop spreading your false logic. USD has 1% interest on savings accounts, does it stop anyone from spending USD?
