PoW gives bitcoin an unforgeable cost. This means that for bitcoins to be created an earned by miners they have to spend electricity. So there is a real cost to create and earn bitcoin that cannot be faked. Current currencies don't have a cost, they can be created at the press of a button from thin air. Gold also has a cost, it has to be mined, work, time, machines, can't be created from nothing. Now POS to create you need 32 eth that can be faked, if you can print money from nothing you can buy 32 with no cost. For Bitcoin you can also buy with money but we are talking about the production, you can buy bitcoin miners with fake money but you still need to spend electricity, a lot of it. Same with gold you still have to put the work. So to mine bitcoin or gold you have to keep putting real energy/work, for POS you buy 32 eth and it's done, you keep earning without any work. This bitcoin and gold costs also forces the miners to sell to pay for operarion costs, that makes bitcoin more distributed among everyone. In POS you don't have costs so you don't have to sell, so the richer get richer and power concentrates in the rich, in POS the interest is paid by the users, so users get less eth and nodes get more without the need to sell.
Discussion
If you’ve ever spent a lot of time doing something only to have it dismissed you’ll see the flaw in your argument
I'm not saying that just putting work/energy into something makes it valuable. Bitcoin and gold are valuable for many other reasons, I'm referring to money as this are important properties. To have an unforgeable cost is just one of them. In POS the cost is zero.
A celebrity’s signature has value with pretty much zero work. Just sayin’…
What about the work required to become a celebrity that their signature is worth something?
If that were the case we’d want the signatures of the single mom with kids working two jobs to pay the bills.
Just like how not all miners are rewarded with the block reward for work done.
Difficult to abstract the work done by a celebrity and a mother as an analogy for PoW. Not really a great example as the work done is not the same.
Sure. Even though we can say that a celebrity put some work that is recognized by others as valuable, so in the same regard my signature is worthless, the same as a fake signature. Either way you point is correct, air also has an infinite ammout of value and its free. Again I'm not saying energy/work equals high value. For money you have to have a known set of good properties. Diamonds also require a lot of work, but they are not good as money, it lacks other properties. PoW/energy is just one, it anchors bitcoin to the real physical world.
I hear a lot of folks here saying the value of fiat is fake. But “the good faith and credit” of the US is the same (more, actually) as what a celebrity does to earn fame. Yet people dis the Fed, which is a huge part of our financial stability. And I’m always shocked at the people who are OK with the US going into default over a political squabble.
I have no card on US politics, I am an EU citizen. A default of US or a any collapse of the usd or any other currency is bad for the lives of many. The problem is that the faith and credit of the issuers, Fed, ECB etc is broken due to bad decisions and/or corruption namely by debasing the currency because they can. Also the current model of constant inflation is broken like Jeff Booth explains. This is what bitcoin fixes. It changes the economic model and removes the need to thrust the issuer.
Inflation is a relatively new thing in the US and caused by fate playing the wildcard of a global pandemic. It will pass.
(And yes I’m old enough to remember the inflation in the ‘70s. I’m talking more recent history.)
Inflation is a constant part of the system. The target each year is 2% and that is the official data, which in real terms is usually higher. So over the years, and with banks not paying interest on deposits people lose the ability to save over long term. So they have to invest to keep up. This is only the beginning, US and Europe will become increasingly unstable and with sticky inflation and higher inflation spikes cycles. US and EU will have the same problems as other nations, like Argentina, they are just lagging in years. Inflation is here to stay, how do you think the major debt to gdp will be paid? They will print their way out. Check Jeff Booth recent interview in "What bitcoin did" podcast on YouTube to understand how the system is unsustainable.
That's a hilariously ignorant point of view!
Interesting word salad
No that celebrity typically did a lot of work to make their signature valuable. AND if they make lots if them, their value will drop significantly... so terrible for a money