Topic: Major Problems in Crypto Currency - page 2. (Read 1399 times)
IMHO, Peercoin has the best solutions to these problems; with a fair initial distribution through proof-of-work (mainly from the time period when mining was more accessible), and the small 1%/year PoS reward is not big enough to justify hoarding all of your coins. Anyways, I'm quite sure most holders of 100% PoW coins won't spend much of them before their value is multiplied. Deflation encourages hoarding, so the small inflation present in PoS coins offset the advantages of the small reward hoarding gives you.
the major problem of proof of stake is that there's nothing at stake.
what do you mean?
the major problem of proof of stake is that there's nothing at stake.
the problem of pos (pure pos) is transparency, if they could find a way to spread the coin as much as possible without cheating it might have a bright future
transparency definitly is a issue!
I think NEM is looking quite promising when it comes to the distribution question.
theres just too many coins now. need to weed it out to 60-70
I don't think thats such a big problem.
Better a million shitcoins, than a central banking system where i don't have any choice about my currency what so ever!
The third big problem:
- What are they? Are they currencies, designed to be spent, or are they commodities/valuables, designed to increase in value?
The two contradict each other. If you think BTC is going to increase in value, it makes no economic sense to spend it, you would spend USD instead, and keep your BTC.
But the ultimate long term value of BTC is tied to it actually becoming used as a currency (or at least a medium of exchange), and so having actual use, rather than just speculative value.
You need to convince retailers to accept BTC, and for people to spend it, to increase its long term value.
But if you think its long term value will increase, you won't spend it.
- What are they? Are they currencies, designed to be spent, or are they commodities/valuables, designed to increase in value?
The two contradict each other. If you think BTC is going to increase in value, it makes no economic sense to spend it, you would spend USD instead, and keep your BTC.
But the ultimate long term value of BTC is tied to it actually becoming used as a currency (or at least a medium of exchange), and so having actual use, rather than just speculative value.
You need to convince retailers to accept BTC, and for people to spend it, to increase its long term value.
But if you think its long term value will increase, you won't spend it.
"becoming used as a currency" is quite a problem in the crypto world I find. But I think Bitcoin (and other POW currencies) handle that problem through a transaction fee that is almost nil. enormous advantage to fiat money!
POW transaction fees are usually higher, and proportional to what you spend.
theres just too many coins now. need to weed it out to 60-70
the problem of pos (pure pos) is transparency, if they could find a way to spread the coin as much as possible without cheating it might have a bright future
The third big problem:
- What are they? Are they currencies, designed to be spent, or are they commodities/valuables, designed to increase in value?
The two contradict each other. If you think BTC is going to increase in value, it makes no economic sense to spend it, you would spend USD instead, and keep your BTC.
But the ultimate long term value of BTC is tied to it actually becoming used as a currency (or at least a medium of exchange), and so having actual use, rather than just speculative value.
You need to convince retailers to accept BTC, and for people to spend it, to increase its long term value.
But if you think its long term value will increase, you won't spend it.
- What are they? Are they currencies, designed to be spent, or are they commodities/valuables, designed to increase in value?
The two contradict each other. If you think BTC is going to increase in value, it makes no economic sense to spend it, you would spend USD instead, and keep your BTC.
But the ultimate long term value of BTC is tied to it actually becoming used as a currency (or at least a medium of exchange), and so having actual use, rather than just speculative value.
You need to convince retailers to accept BTC, and for people to spend it, to increase its long term value.
But if you think its long term value will increase, you won't spend it.
Major*
POW:
- enormous power consumption
- bad distribution through big mining farms
- threat of 51% attack
POS:
- encourages hoarding, but not spending
- lots of scamming through lacking transparency in IPOs
- potentially bad distribution through IPOs
same for all:
- length of the blockchain
1. other problems?
2. any solutions?
- enormous power consumption
- bad distribution through big mining farms
- threat of 51% attack
POS:
- encourages hoarding, but not spending
- lots of scamming through lacking transparency in IPOs
- potentially bad distribution through IPOs
same for all:
- length of the blockchain
1. other problems?
2. any solutions?
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