Bitcoin ≠ Crypto
PoW ≠ PoS
If you don’t understand this — and the fundamental differences between the consensus algorithms — you don’t yet understand what’s truly revolutionary and paradigm-shifting versus what’s simply a digital replica of the existing, centrally manipulated, forever-inflationary fiat monetary system.
Proof-of-Work (PoW) anchors digital value to thermodynamic reality — requiring energy, and in doing so, establishes a bridge between the digital and physical realms.
Proof-of-Stake (PoS) anchors it to human abstraction — where the more stake one holds, the greater degree of control they have over the network.
One is grounded in physics; the other in thought alone.
One is truly decentralized and resilient; the other ultimately corruptible by those who gain access to the greatest stake.
One is inherently apolitical and egalitarian; the other inherently political and plutocratic.
Can both offer value and new possibilities as emerging and disruptive technologies? Certainly.
But only one represents a true paradigm shift. Only one takes a first-principles approach to addressing the root causes of our sick money.