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Thanks for the comment. Can u elaborate more on how the elitism happens and why #Bitcoin is immune to that? You see several mining pools have a significant amount of hash power.

Sovereign Matt 2y ago 💬 1

PoW means even the biggest miners still have to put in huge amounts of work to acquire the bitcoin fairly with the addition there is free market competition for the next block reward against other miners.

Yes, barrier of entry to be a huge commercial bitcoin miner gets harder and harder for everyday plebs but thats where the “you get the bitcoin at the price you deserve” meme comes in.

Inequality is inherit in every system but proof of work rewards those who work and our the most efficient. PoW systems creates a system of meritocracy where people have status and wealth based on the value they provide to the economy.

Proof of Stake on the other hand rewards those individuals who provide zero value to the economy. There are a lot of hard working Proof of Stakers dont get me wrong, but the incentive structure means many will be rewarded for simply just being early without having to work for it. Now does that seem fair?

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Bite Dat Crypto 2y ago 💬 1

That's a nice argument. The fact that PoW creates a system of meritocracy makes Bitcoin valuable and I have no doubt about that.

However, my concern is that, even though those early stakes of PoS and large custodians mainly work as "elites" who contribute to the network with little or no work, I'm still wondering if there is a possible way the system can be corrupted. If there are fraudulent activities going on, the stakes will be slashed (obviously there is a copy of the entire blockchain encoded by other validators), and if they ever try to make a malicious upgrade then the people who delegated their tokens can move their stakes just like how miners can move around different pools.

So what are some possible ways that the system can be corrupted and ultimately fail by elitism?

Sovereign Matt 2y ago 💬 1

In the short and medium term probably nobody would notice much. But in the long run, cracks will start to form. Generational wealth will be passed down and you get spoiled kids who want to take short cuts.

Thats my theory at least.

Bite Dat Crypto 2y ago 💬 1

So it all comes down to the "hard money" that #bitcoin presents. You have to put in an effort to keep the system running.

I see your point where PoS is relatively easy to be spoiled because there are fewer "prerequisites" to ruin the system if I get it right.

And most of all, IRS is after your stakes rewards lol

Sovereign Matt 2y ago

Yep, and theres nothing that big miners can do to change the supply of bitcoin.