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RE: Famous Economist Explains: Proof-of-Stake Tokens are Money, Bitcoin Isn't
I think I would disagree with Keen. To me, PoS is more closely related to ownership shares within a given system, not currency.
From this Quora post, we can observe that a currency must meet these requirements:
- Generally Accepted
- Durable
- Divisible
- Stable/Consistent
- Transportable
- Scarce
- Easily recognizable
- Difficult to Counterfeit
PoS tokens do not fulfill points 4, 5, or 7 and may or may not fulfill point 2's requirements depending on the size of the system.
On the other hand, ownership shares (or a security) represents ownership in a system unique to that system. The ownership share is generally not used for exchange for common goods and services, but is first converted into a currency for market trade.
So for these reasons, PoS tokens seem to act more as demonstrating ownership, or belonging to, a given system.
Curious for your thoughts.
Currency used to represent a store of value, before the 70's, when the US was still on a Gold Standard. That time is nothing more than fairy stories now. Currency is now simply the fuel for our day to day existence. It could intrinsically be worth absolutely nothing, but as long as you can buy the gas for your car and food for your belly with it, it's going to be the only thing you really care about.
Money has become a corrupt instrument of control, a shell of its former theory and function, serving to adhere us to "norms" rather than grant us any liberty. We live in measures of government-subsidized poker chips, and as long as the casino is open, no one is complaining. It stands to reason that blockchain-based currency, a consensus value asset, would reward those who participate in the community, rather than someone who can arbitrarily dig a hole in the ground (metaphorically) the fastest.
Fixed supply PoS coins are going to be the functional reality of cryptocurrency, as their value will be far more consistent and predictable than PoW coins, that are all just trying to emulate Bitcoin anyway. The writing is on the wall folks, Bitcoin is the first (and therefore worst) crypto protocol digital currency platform. Like every other early internet venture it will become a relic when its evolved rivals, who have been carefully studying the competition, start to demonstrate their improved coding platforms. Once users begin to grow accustomed to crypto-utility in practice, Bitcoin will suddenly lose all of its hyperbolic demand. Then, sensing the inevitable, traders will cash out, locking up the network and simultaneously dropping the market price.
It was fun while it lasted, but Bitcoin and PoW are on their last leg.