I thought I would put out my opinion on the impact of proof of stake (PoS) mining mostly on environmental issues. Anytime you go about doing something either as an individual or a society it is good to take a really long look at the impact your actions may have on the planet as a whole. We really can’t truly know what all the repercussions of our collective action might result in but the better understanding of it we have the better decisions we can make for the best way of doing things.
Bitcoin mining uses lots of power and causes the creation of new hardware that quickly becomes obsolete. This has become an issue as Bitcoin has matured and become increasingly valuable.
Cryptocoins using PoS can cut down the use of power and reduce the electronic waste created by upgrades to faster hardware. This holds true to some extent even if they should become more valuable, many people use their computers every day and PoS can be easily done while doing other work on the computer.
Way back when Bitcoin was just getting started it was very easy for people to mine it using just a simple computer. As the value of the cryptocoin increased and more and more people became involved, increasingly faster hardware was needed in order to get any significant amount of Bitcoin. An arms race of sorts followed where now only people who have enough high power computing resources with access to cheap power are able to turn a profit.
For me personally this has resulted in hardware purchases that are really not cost effective to run any longer but I keep in service because I’m more of a hobbyist and I can’t stand tossing something I recently purchased into the recycle bin. (The equipment still has commercial value to the right purchaser but it will may never pay for the power used to run it so I feel a bit awkward in selling it)
As more and more people and transactions are being done through Bitcoin the need for better more efficient technologies is forming. For one thing Bitcoin may not hold up well to the shear number of financial transactions needed in the global economy. Even if it could, having additional systems for moving value will allow the specialization that can be tailored to our individual tastes and investment risk toleration. Newer cryptocoins are easier to test new ideas with because there is not as much of a risk to existing investors.
All other factors aside, if it takes less power and uses less specialized equipment to do the same job the environment should benefit by a switch to PoS or similar type block chain technologies. In the future this will allow more people to become involved as early adopters without the need for faster hardware. Simple low power computer systems (like the Raspberry Pi) or even older cell phones could be put to use for minting new coins using PoS.
By placing value in a cryptocurrency, in particular one that has a low cost to maintain like a PoS based cryptocoin you can avoid lots of other issues. There is always a cost involved in trading something physical and tangible for some good or service that you want. In these changeable times I’ve thought about investing in something like gold or silver or something I can really sink my teeth into like a years supply of beans. 😀
The big issue from how I look at it is that with so many people on the planet we really can’t afford to start a gold rush or major amounts of hoarding. If all the investment dollars start flowing into gold and silver the pricing could go very high. Old abandoned mines all over the place may be worth reopening. Gold panning with mercury might come back in style and gold and silver mining operations of this scale could have a big environmental impact in many areas of the world.
Value for Everyone
It is not that difficult to get started mining cryptocoins with PoS. There are few barriers to entry, you just download the wallet get some coins and away you go, it is not rocket science or even computer science really. 😀 My hope is that by getting more value in the hands of everyday people they will have a better “vote” so to speak in what things will get valued and produced by our societies. If this succeeds it is important for us to have a free flow of ideas and knowledge so that we can spend our cryptocoins wisely. (I for one would love to purchase solar panels if I had extra cash)
How we treat each other and our environment are key factors in manifesting abundance the world over. All real value rests squarely on the worlds environment being able so support us. As we keep doing things with greater efficiency with inventions saving labor and resources, we can pave the way for a better future for ourselves and children if we make good sustainable choices.
What other business types do behind closed doors can be bypassed through a system where everyone knows the risks and acts according to market dynamics and common knowledge. A peer to peer network is the cheapest way to act like an international banker imho.
Most of us are not living a sustainable lifestyle and whether we recognize this fact or not I believe it is causing concern. We can at least practice environmentally sustainable cryptocoin mining. 🙂
Please don’t take this as investment advice – at this point in the game who knows how any of this will work out and please try to research as much as you can before jumping in. If you have other ideas or comments on how proof of stake mining of cryptocoins might impact the world or how we can do things better feel free to post below.