Why?
-
-
> borrowing costs may be in excess of staking return I'm not sure you see the irony but you are arguing against PoS. If staking return is indeed lower than interest rates, people will want to sell their stake & chase things that have better returns. A recipe for disaster.
-
Tbf, this (low rate of return compared to other types of investments) can happen to PoW mining too but since PoW requires extremely specialized equipment, it is a lot harder to sell a mining stake. Mining requires long term commitment, staking does not.
-
To summarize this point: staking's primary cost component is financial. Therefore, PoS is a lot more susceptible to movement of financial capital & swings in interest rates than PoW, which requires large, upfront, long-term hardware investment.
- 2 more replies
New conversation -
-
-
the borrowing costs of real assets have *never* been convergent in the long run as a result of yield chasing etc
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.


This thread gives a good summary of what I’ve written on the topic. From the engineering perspective, PoS is unlikely to work / offer any real benefit over PoW.
Let me try to unpack this.