News for hackers. Stuff that matters.

A comment on Cryptocurrency Blockchains Don’t Need to Be Energy Intensive. Parent comment

Re:Cryptocurrency Blockchains Don’t Need to Be Energy Intensive by fleddr on Monday July 05, 2021 @10:48AM (#27738525)
You have a very odd grasp of reality.

If I invest in Bitcoin and its price increased by 10%, I did not lose money if it turned out that real estate would have gained by 20%. I still gained 10%. Actually, only if I sold it.

That's not "losing money", it's not maximizing returns.

Further, you're still missing the double effect of staking. With staking your portfolio value will depend on the price of the token, yet since you staked it (it's locked up), it's a paper win/loss. Further, regardless of that, you get NEW coins for free.

Further, it's not linear at all. It's whatever the token does, which can be linear, parabolic, anything.

[ Parent | on HN ]
Re:Cryptocurrency Blockchains Don’t Need to Be Energy Intensive by shawnz on Monday July 05, 2021 @10:51AM (#27738549)
That aspect is the same as PoW. PoW rewards also depend on what the value of the coin does.

You are right that you wouldn't normally consider alternate investments like that. But with PoS, where the only cost is the time value of the money staked, it is the only thing to compare.

[ Parent | on HN ]