Topic: PoS coins - page 2. (Read 2006 times)

Pos has many many vulnerabilities already discussed in this forum, sure it has advantages by blocking the 51% attack, but if the market cap is small then if some1 buys up 51% of the coin supply they can perform the attack easily, so since because of this a few guys will own 51% of the coins in the start era to make sure nobody can aquire more than 51% fast enough.

This makes all POS coins unevenly distributed, and basically a pump and dump because if lets say 10 guys own 51%, then what if the market cap reaches 1 billion $? You bet that all of them will sell it and buy some sports car with it, they dont care about the coin.

So because of this its hard to find a long term POS coin. I think NXT is a good coin, but it needs more features though.

You can mine on POS coins on any computer even raspberry pi but the return are usually very low. Most of the POS coins are pump and dumps which makes you lose money.

Thank you all guys for being so helpful, followed your links, understood more about it) Live and learn!

because they are like giveaway basically, with safe coin generation(pos)

also they are anti-instaming, and their launch is considered somehow safe, or more safe than pow, due to 100% distribution

Sorry I did not get that?

PoS value after 1 or 2 months is 30% ot the coin value with Pow..
so it could not be a huge investment

There's a decent write-up by mullick on PoS here

https://cryptocointalk.com/topic/700-proof-of-stake-explained-rough-draft/

If we assume that all current bitcoin miners hash at 1GH/W, then the whole network uses 340MW, which is a lot.
One of the advantages of PoS is energy efficiency. you don't need to waste so much energy for generating blocks, you only need to have stake (and a Raspberry Pi or regular PC for example).

The difference from a miners perspective is this: When trying to mine bitcoins, you have to buy expensive specialized hardware, which may or may not give you ROI (probably not if you're a hobby miner).
When forging with PoS, I have to buy coins, that then act like "virtual miners". The coins don't degenerate over time.

Difference: The hardware value of PoW miners tend to decrease quite fast, it's hard to sell them at a good price. Whereas I can easily sell my PoS coins again, and they don't necessarily loose value (lately they lost value, but so did bitcoin).

How pure PoS works (I only know Nxt, sorry):
After an open IPO of 1 1/2 months, 1B coins are issued at once to everyone who invested (I consider this fair). Max amount to invest is 1BTC, so that 1 person does not claim most of the coins (make sure to check for sockpuppets as good as possible.) You can't really talk of a pre-mine, since there is no mining at all. Fyi The Nxt dev made a whopping 21BTC (I thought he didn't even keep the money for himself, but not sure).

Someone sells 1M to me at an exchange (maybe because he wants crappy fiat).
Now I have 0.1% of the total supply.
I begin to forge. Each block, I have a chance of 0.1% to generate the block.
When I actually forge a block, I get all transaction fees in this block.
Each Nxt transaction costs 1 Nxt.

Please notice that bitcoin will have to run on tx fees too once all 21M coins are mined.



Why would anyone buy huge amount of coins just to get some percentage?
-> Why wouldn't they? Making money is not such a bad idea. Other question: Why would anyone buy huge amount of miners just to generate some blocks?
To be honest, if you look at Nxt for example, you won't get rich quick. Atm you get around 0,5% profit per year (still more than most banks interest).
This number could increase if there will be more transaction in the future.

for pure PoS coins, you don't necessarily need to pay to the Dev for the coins. There are several examples of coins, where all coins where distributed for free, and dev/dev team were just among the participants of the distribution, e.g.,
KTK: https://bitcointalksearch.org/topic/ktk-kryptkoin-phr-phore-check-new-ann-606809
PMP: https://bitcointalksearch.org/topic/ann-pmp-premineplus-launch-new-features-oct-signup-free-distribution-673760
Then you have free and fair distribution, answering most of the questions of the OP.

Your answer hasn't make it clearer x)
I understand how PoS works, i just don't understand why would anyone buy huge amount of coin just to get some percentage(?)
I'm interested how much of PoS coin you need to have in order to get something in return? If it's like a deposit, and it's impossible to mine a coin, who would sell it to you and how the coin flow works? Any PoS coin should be 100% pre-mined, right? How come it's fair in any way?
You see, all questions. I would appreciate a link or something, i'm sure this subject was discussed before.

PoW+PoS or just simple PoS, they all end up being 99% of the time PoS.

The difference is the way the initial coins are spread to the people.
Starting PoW is more fair, some say, especially because pure PoS means that you have to pay for the coins and the devs just cash in.


The future of crypto? I don't agree with that, but it may be related to the fact PoW is expensive as equipment and power, while for PoS you need only your money (and a working wallet).


Hype? Well, some coins do heavy advertising, some don't.. you have to think long term, based on a lot of things (features, devs, community, ...)

Hello. Could someone explain or give a link to read about it - why PoS coins are popular and some people say that's the future of cryptocurrency? I understand PoW/PoS hybrid - this is really nice, but just 100%PoS? Why the hell anyone would need this? Why there is this hype about NXT, f.e.?