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Re:Proof of stake is incapable of producing a consensus by littlestymaar on Sunday November 28, 2021 @08:56AM (#29368913)
There's also an alternative:

3. cryptocurrencies stop the Austrian economics fetishism and index the coin reward to the mining difficulty. That means getting rid of the fixed coin supply.

That would stabilize the price of the token a lot (since price going up would increase the mining appeal, thus expanding the money supply, driving the price down) and also make it much more usable as a mean of payment (the number of token in circulation would grow in parallel with the growth in users).

Obviously it's not gonna happen, because those people have spent a decade convincing themselves that deflation is good and fixed money supply is the righteous way to manage a currency.

Re:Proof of stake is incapable of producing a consensus by thinkloop on Sunday November 28, 2021 @09:23AM (#29369098)
The difficulty is where the security comes from. Bitcoin's goal is to have the highest possible prices and difficulty so that nation-states and alien civilizations can't hack it. It's very easy to have a cheap low-difficulty coin. Equally worthless too. You need to understand that proof-of-work is actually proof-of-waste - the waste, the difficulty, the cost, is the security.
Re:Proof of stake is incapable of producing a consensus by littlestymaar on Sunday November 28, 2021 @09:37AM (#29369217)
You've misunderstood my point: I'm not talking about reducing the difficulty, I'm talking about (sub-linearly) increasing the mining reward as the difficulty grow.

Also the difficulty scaling is important even if you don't take security into account: if you don't raise it, then the block mining frequency rise progressively, and then you end up with more and more orphaned blocks, until you end up with parallel chains that don't really converge to a single coherent one.

Re:Proof of stake is incapable of producing a consensus by thinkloop on Sunday November 28, 2021 @10:10AM (#29369445)
I see what you mean now. Interesting thought to peg inflation to difficulty. I think the main issue is that Bitcoin is not, and will not be, a means of payment. So price stability doesn't matter much. The nature of the system favors few, large transactions. The small-block size crystalized that. Bitcoin is truly suited as a clearing layer. Eventually it will process just the largest most expensive transactions in the world. Which is good since that's the only way miners will get paid and the high transaction costs will ensure continued security.
Re:Proof of stake is incapable of producing a consensus by lukifer on Sunday November 28, 2021 @12:30PM (#29370832)
The focus on fixed money supply seems a little absurd to me anyway, given the triviality of creating new crypto-currencies, and the relatively low transaction costs of trading between them.

Imagine making a case for returning to the gold standard, when thousands of other choices for new precious metals, all with the same performance characteristics, were literally just lying around, and a network of drones would let you swap perfectly and instantly between those metals for pennies!

In that light, one can certainly understand the fervent contempt that Bitcoin maximalists hold for "shitcoins"; but a free-banking market cuts both ways. Barring a state blessing one chain and outlawing the rest, creating new cryptos and swapping between them won't go away. The proper way to measure the emergent "monetary policy" of crypto-currency is of the sum of all chains, not of Bitcoin itself.

Re:Proof of stake is incapable of producing a consensus by littlestymaar on Sunday November 28, 2021 @03:56PM (#29372928)
Indeed. And I personally love to remind the fans of bitcoin's limited supply that with the different forks the bitcoin faced during its life, the bitcoin money supply grew a lot more than it was supposed to, without causing any price collapse.
Re:Proof of stake is incapable of producing a consensus by danlugo92 on Sunday November 28, 2021 @07:06PM (#29374699)
Bitcoin is safe and decentralized, all of the other coins are not.