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by dlubarov
1894 days ago
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It seems like your contention is that PoS coins are priced based on discounted cash flow, correct? I think that's a reasonable model, but it's hardly unique to PoS coins, and it doesn't really seem problematic. > the system is only as resilient as the nodes run by the people who bought in initially This point applies to any assets that generate cash flow, like stocks, yet they seem to have plenty of trading volume. And looking at some numbers on CoinMarketCap, it doesn't seem like PoS coins have lower trading volume than PoW coins. As one example, XTZ seems to have ~double BTC's turnover in the past 24h. > these folks believed the coins are worth less than what you're buying them for, which doesn't bode well for you as the buyer This could be said about most assets, even ones without cash flow like PoW coins. In practice there are other reasons for selling, like wanting to offset gains/losses for tax purposes, or wanting to buy food. |
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It's very problematic if the system's liveness is tied to owning a coin. If I can knock PoS nodes offline, I can not only cause a quorum failure, but also I can cause the offline nodes's coins to get slashed (which is usually how PoS chains deal with this problem). Moreover, there's no recovery from this -- the temporarily-offline nodes are forever slashed, even if they come online later. (EDIT: I'm not limited to knocking nodes offline -- if I can commandeer them through a zero-day, the effect is the same: I make your nodes commit a slashable offense).
Contrast this to PoW, where even if you manage to knock a majority of miners offline, you ultimately have to keep them offline in order to prevent them from later generating and broadcasting a better chain than the one you want to exist. Even if you can physically destroy the majority of miners, the chain still lives on, and new miners can be built and brought online elsewhere.
> This point applies to any assets that generate cash flow, like stocks, yet they seem to have plenty of trading volume
Trading volume is easily faked in crypto-land -- a whale just sends coins to themselves. I'd like to see some hard evidence that the volumes are not from wash-trading. Also, this isn't relevant at all to the system's resilience.
> In practice there are other reasons for selling, like wanting to offset gains/losses for tax purposes, or wanting to buy food.
I didn't say you don't sell coins. I said you don't sell enough of them that the buyer can use them to increase their rate of coin production.