Topic: Risk of Proof-of-Stake Coins (Read 201 times)
Proof-of-stake cryptocurrencies have been around for a while now with some of them achieving prominent positions in the market and coins that are more evenly distributed such as Dash are not very susceptible to 51% attacks, although if too many holders keep their assets on exchanges there can be a risk of exchange manipulation but besides that they aren't a bad investment proposition as this technology still hasn't been superseded
Maybe risk of POS coin is when we don't know when to sell it and keep staking. Because there are a chance the coin can be decreased because people keep sell it and then we only waste our time to stake.
at this point because the market is overflowing with all these useless PoS coins and useless masternode coins there is an additional risk on top of the scam rise and that is the huge dumps risk. imagine there are 10 people investing in 10 coins before, they each buy a large amount of each coin and that coin can go up bigger. now imagine there are 20 people but investing in 500 coins none of them are going anywhere and the worst part is that all the 500 coins are exactly the same!
Most people buy just for short-time profit that they can get. They do not really care about its use case or any application whatsoever. In this world, greed for money is everywhere. That is the main reason of the rise of junk coins with nothing to offer to the crypto community but grab easy money from gullible users. Unfortunately, that's the sad truth. Your own self is the only one to rely on with your investments.
This is a free market and people will always take advantage of that to come up with ideas they can use in scamming a lot of gullible users who are just head bent of making profit in crypto and not trying to learn how the system works. POS is relatively new and still under test therefore we can't give conclusions about it, but we just have be very careful when investing in any project that comes in the name of masternode reward to scam people.
We can always find the wrong way to make money for ourselves. But another ways do not satisfy us because it is difficult to gain from the right way. Continuing with safe projects will keep us safer. 
This is a free market and people will always take advantage of that to come up with ideas they can use in scamming a lot of gullible users who are just head bent of making profit in crypto and not trying to learn how the system works. POS is relatively new and still under test therefore we can't give conclusions about it, but we just have be very careful when investing in any project that comes in the name of masternode reward to scam people.
But for viewing above all these competitions of projects related to proof-of-stake, there will still projects that will become successful and projects that do not. It is the same with POW projects and other projects out there. It is just a matter of luck if you happen to focus on investing from a project that will become successful.
at this point because the market is overflowing with all these useless PoS coins and useless masternode coins there is an additional risk on top of the scam rise and that is the huge dumps risk. imagine there are 10 people investing in 10 coins before, they each buy a large amount of each coin and that coin can go up bigger. now imagine there are 20 people but investing in 500 coins none of them are going anywhere and the worst part is that all the 500 coins are exactly the same!
I dont really get it ... so whats the risk you are seeing in PoS coins which you dont see in PoW? When it comes only to burning electricity you are wiping out all the advantages PoS has compared to PoW!
I literally get bombarded with MN coins every few days on discord. And got scammed once as well, guess that's learning experience.
After ICO scams in 2017, the new kind of scams are emerging in Proof-of-stake coins space, specially MasterNodes way is getting bumped up the sentiments of people become overnight rich out of air. They don't know how badly they are caught themselves.
In simple words, Proof-of-stake in any form whether Delegation PoS or anything else, is good compared burning electricity point of view in PoW coins however there is lot of flaws in designs to fit in for very very long time is yet to be proven under blockchain distributed ledger technology with its safety, security & integrity or consensus.
As of now, any PoS is RISK to invest if it is new and listed in less than 10 exchanges (is must) to trust and safeguard your investment.
The reward will be distributed in a monthly basis to the stakeholders or master node and if that was not having a lot of liquidity and the price of POS or MN coin can't defend its price. It's simple to be dumped when there was no a lot of volumes. In simple words, Proof-of-stake in any form whether Delegation PoS or anything else, is good compared burning electricity point of view in PoW coins however there is lot of flaws in designs to fit in for very very long time is yet to be proven under blockchain distributed ledger technology with its safety, security & integrity or consensus.
As of now, any PoS is RISK to invest if it is new and listed in less than 10 exchanges (is must) to trust and safeguard your investment.
With the success of DASH, everyone intended to make a POS coins and it was followed by insane promises of high ROI. Thought the algorithm provided the promised ROI in number of coins. The deflation often results in lower price. That is one of the reasons why newer POS failed.
After ICO scams in 2017, the new kind of scams are emerging in Proof-of-stake coins space, specially MasterNodes way is getting bumped up the sentiments of people become overnight rich out of air. They don't know how badly they are caught themselves.
In simple words, Proof-of-stake in any form whether Delegation PoS or anything else, is good compared burning electricity point of view in PoW coins however there is lot of flaws in designs to fit in for very very long time is yet to be proven under blockchain distributed ledger technology with its safety, security & integrity or consensus.
As of now, any PoS is RISK to invest if it is new and listed in less than 10 exchanges (is must) to trust and safeguard your investment.
In simple words, Proof-of-stake in any form whether Delegation PoS or anything else, is good compared burning electricity point of view in PoW coins however there is lot of flaws in designs to fit in for very very long time is yet to be proven under blockchain distributed ledger technology with its safety, security & integrity or consensus.
As of now, any PoS is RISK to invest if it is new and listed in less than 10 exchanges (is must) to trust and safeguard your investment.
Jump to: