Critics of PoS have argued that Cardano will not survive even a single bear market because the value of ADA coins will drop and it will be easy to commit the 51% attack. That hasn’t happened to any running PoS blockchain yet. The decentralization and security of the Cardano network have not fundamentally changed during the bear market. The number of delegators keeps growing as well as the number of pools that produce blocks. The Cardano network gives a healthy impression. There are articles in the media about PoW miners being forced to sell their accumulated BTC to avoid bankruptcy. Some have already been forced to sell ASIC hardware or stop mining. Others may declare bankruptcy in the coming months if the market value of BTC does not rise soon. The hash rate, which until recently was reaching new ATHs, has begun to fall. This news is disturbing. Let’s think about how the fundamental properties of PoS and PoS blockchains are changing in the bear market and how holders are affecting it.
TLDR
- It’s smart to take advantage of the cheap ADA and start staking in a bear market. This is happening and the decentralization of Cardano is growing.
- It is difficult for PoW miners to go out of business without loss or move elsewhere. Bitcoin security is declining and there may be centralization tendencies.
- Mining is risky and relatively complex while staking is easy and essentially risk-free.
- The possibility of committing an attack has nothing to do with whether getting a reward from a network is associated with risk.
- Even if the value of ADA coins were stagnant for many years in a row it would be economically worthwhile for people to stake.
This article was prepared by Cardanians with support from Cexplorer.
Read the article: PoW vs. PoS in a bear market | Cardano Explorer