That's right. But the reality here is not about the initial issues regarding the creation of bitcoin and so on.
Here, they mostly don't care about that.
Personally, I rarely buy Ethereum (ETH) or Binance Coin (BNB). Not because I dislike the projects, but more due to principle. I try to avoid coins based on Proof of Stake (PoS) as much as possible. Even if I do buy occasionally, it's just to experiment or to stay updated with the ecosystem. But the amount is very small, not enough to be a significant part of my crypto portfolio.
The main problem with PoS coins lies in their semi-decentralized nature, which, in practice, tends to become centralized. A few large validators can have substantial control over the network. Now, if it’s like this, what’s the difference from the fiat financial system we know today? Where the power to manage money is only in the hands of a handful of institutions. So if crypto turns into something like fiat, is it still relevant to call it a "financial revolution"?
The basic philosophy of crypto—which was often repeated in the early days of Bitcoin—is to be a means of exchange and a store of value that is truly decentralized. This is where Bitcoin still stands strong. With Proof of Work (PoW), anyone can participate in mining, as long as they have the equipment and electricity. It does require capital, but technically, the entry point is open to everyone. There is no single entity that can arbitrarily control the consensus.
PoW also has a positive side effect: the cost of attacking the network is much higher. You need an enormous amount of computational power to take over the network. Unlike PoS, where you just need to buy and stake a large amount of tokens to gain voting power or validation. So, if there’s a whale that buys a lot of PoS tokens, they can have a huge influence without needing significant effort or physical resources.
That’s why I prefer to buy coins that use the PoW system. It’s clearer philosophically and aligns more with the original vision of Satoshi Nakamoto. Of course, that doesn’t mean all PoS coins are bad—some have interesting use cases, especially for smart contracts and dApps. But if it’s just for store of value or means of exchange, I will stick to the PoW camp.
The main problem with PoS coins lies in their semi-decentralized nature, which, in practice, tends to become centralized. A few large validators can have substantial control over the network. Now, if it’s like this, what’s the difference from the fiat financial system we know today? Where the power to manage money is only in the hands of a handful of institutions. So if crypto turns into something like fiat, is it still relevant to call it a "financial revolution"?
The basic philosophy of crypto—which was often repeated in the early days of Bitcoin—is to be a means of exchange and a store of value that is truly decentralized. This is where Bitcoin still stands strong. With Proof of Work (PoW), anyone can participate in mining, as long as they have the equipment and electricity. It does require capital, but technically, the entry point is open to everyone. There is no single entity that can arbitrarily control the consensus.
PoW also has a positive side effect: the cost of attacking the network is much higher. You need an enormous amount of computational power to take over the network. Unlike PoS, where you just need to buy and stake a large amount of tokens to gain voting power or validation. So, if there’s a whale that buys a lot of PoS tokens, they can have a huge influence without needing significant effort or physical resources.
That’s why I prefer to buy coins that use the PoW system. It’s clearer philosophically and aligns more with the original vision of Satoshi Nakamoto. Of course, that doesn’t mean all PoS coins are bad—some have interesting use cases, especially for smart contracts and dApps. But if it’s just for store of value or means of exchange, I will stick to the PoW camp.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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