An emerging trend is setting up hash farm / pools / mining to mine [mineable coins ]and dump for POS.
Essentially making the exchange/ mine paradigm as a way to obtain POS.
As there is no other way to get POS except buy or mint, it is just sucking out value from hash coins though less with BTC due to BTC reserve status. This also helps distribution
In some ways this has become exactly what Sunny Has set up in PeerCoin, already with the POS/POW.
The entire market is coming together to make a psuedo POW for all POS
It seems increasingly improbable that a non mining solution will win out in the crypto space purely because of the mining headwind/tax. It almost ensures that the whole value of the coin will be swallowed by mining over time.
It is how people can justify mining or expect it to work long term, except for maybe cure coin or similar eg maybe Primecoin.
Once the cold minting and Checkpoint opt out comes in it is perhaps game over for POW. There are software solutions to this, but not software solution to mining.
Near when I first joined in BTC talk I observed that miners would end up with all the money…I return increasingly to that view, and they are forced to consume that money to upgrade gear. That is their business model it will consume all value.
[EDIT] however on reflection it can like only consume the value of coins sold as produced at time (t), nor prior coins. Thus it could be just a head wind, then it will consume all the value that can be had from transactions
conversely you can mint just by holding POS and buy POW if you want at very low cost.
A minter however can actually spend minted profit almost all on goods and services or just save. There is little tax.
Very interesting read!
I’ve got another one on Bitcoin. Perhaps in the end, we will find out that THE most cost efficient way to do Bitcoin mining is to have like a corporation dedicated for this task who then sells mining derivatives. Big corp can get better deals, better location, afford R&D and generally speaking afford to be ahead of the game. And the clients, the people buying the mining derivatives, they will demand the best deals pushing the corporation towards centralization of mining. A few cloud service mining pools will emerge. For these giant pools it will be of utmost importance that the Bitcoin network runs smoothly, so they will create a special entity dedicated to maintain the code base. Payment providers that helps businesses accept Bitcoin and exchange them automatically for fiat, will be invited to share the cost of maintaining the protocol. A few of these super giants now have control over the most common bitcoins to fiat gateways, facilitates payment for businesses, wallet services and all of the mining.
Bitcoin will be running super smooth, without any hiccups. Everyone is making trucks loads of money and then of course the public a little bit afraid of the development and the centralization of power, will demand transparency and regulation. Well, at least government will tell us that this is what people want. And the government will start to regulate what and what goes into the protocol, by threatening the corporations financing the Bitcoin maintenance.
Meanwhile in a dark ally in Copenhagen, some shady guys are buying non-genetically-modified food, swapping some Peercoins using only telepathy. :omg:
@pillow, your scenario and story telling skills are one of the best.
This one is indeed one with a high probability. Let’s hope we won’t make the same mistake twice.
But the laziness/laissez-faire factor of the masses will probably determine the outcome. So strong counter incentives are required along the way.
Now you made my day :). I’m an inspiring author, I’m very glad to hear that
Pillow certainly “inspires” me with what he/she writes. So it appears that it can work either way
Sorry, this is off-topic, but I just had to point this out for the lols.
I hope I’ve inspired you to learn about the word “aspiring”! :))[/quote]
lol. Yes, my grammar, syntax and spelling and everything is actually really awful. But this is a trick. In reality I’m like this super duper mega best speller, so I write like this to obfuscate so that no-one can do an analysis that matches my writing style with the academic papers I publish in the great scientific magazines (so my name can be connected to this alias). Yes, yes, that’s what it is.
Interesting, I it never occurred to me that someone would think of me as a “he”. Or should I write “I it never occurred to me that someone would think of me as a “she””. I always thought people would just read my alias and then think of this guy: https://www.youtube.com/watch?v=OA6EHCrgZC0
Nice to hear that I’m an inspiration