People say this is healthy but don’t realize what kind of effect it has on the centralization of the POW network.
Extreme price reductions like we are seeing with BTC, result in the consolidation of networks AND reduction of hashing power.
If you didn’t like your POW before, you’d hate it now as only a handful strong players with cheap energy costs and fast equipment can now mine.
In POS your security guarantees don’t depend on market price of your token. It is a very strong selling point for anyone serious about transferring their operations/value creation mechanism to the open, decentralized networks.
If designed with proper incentives and decentralization parameters, POS will be head and shoulders above POW.
If Cardano rolls out Shelley in Q1 2019, it will be a significant development for the whole space as it will be the first decentralized POS network with provable security guarantees that don’t depend on external factors.
Totally agreed theoretically, but it would still need much more time to achieve what you suppose!
Now, consider this …
you know about POS , I know and all miners knows too which in their point of view ( and perspective ) POS is evil and precisly this is why they would fight it strong and severely which eventually would lead to a slow growth of POS
I know there are some ideological differences between the two but for potential users security matters a lot and it simply can’t flictuate because of price.
Miners can fight it but if they can’t sustain their operations because of low prices, they are fighting for a lost cause. Supporting POW can get expensive.
Yes, actually is very interesting on this days to know the ratio between expenses and mining gain for POW
I guess it would look like a nightmare those numbers
I tried mining a few weeks ago with (a powerful) GPU. Even after a bunch of optimizing it was still no profitable. It was cheaper buying the coin rather than mining it with electricity. And this was when BTC was between 5 and 6K. Now the situation is even worth.
Yeah, mining would be interesting just once the coin evaluation is quite high yet at the same time if the price is high, it would cause a augmentation in difficulty as higher prices would drive a lot of people to mine, it’s a vicious circle.
I mined exactly for 3 weeks ( many coins ) just to know numbers and it was depressing
Mining is interesting exclusively if you are a whale miner! That’s it.
Anyone trying in now is lost of resources, buying the coin is more interesting.
I was never interested in mining. Early on I looked into it and decided it was much better to buy than mine. Equipment cost plus obsolescence makes mining a very bad investment for newbies.