Think PoS Is the Future? Look at USD That Is a Failed Implementation of PoS, Then You’ll Buy Bitcoin | by Sylvain Saurel | Sep, 2021

Sylvain Saurel

Proof-of-Work is a system made for the good of all.

Illustration by Sylvain Saurel

The growing success of Bitcoin is increasingly worrying the powerful people in charge of the current monetary and financial system. This is evidenced by the incessant attacks and criticisms that are launched against the king of digital currency. Not a week goes by without a central banker, a leading economist, a private banker, a politician, or the media launching false attacks on Bitcoin.

If you spend enough time in the Bitcoin world, you will also notice that the attacks on Bitcoin are always the same.

There are periods. At times, these powerful people attack the volatility of Bitcoin. People as SEC chairman Gary Gensler, for example, say that citizens should be protected from the danger of Bitcoin.

Gensler, however, is careful not to protect the general public from the stock market, which is manipulated by the Fed in the first place. No, only Bitcoin is dangerous to listen to these powerful people.

At other times, Bitcoin is attacked for being an ecological disaster. A time bomb that endangers the world of the future. No matter how many times you demonstrate that Bitcoin’s ESG score is already high, these opponents of Bitcoin will continue to put forth the same false preconceptions to the general public.

The good news here is that the Bitcoin community is now becoming better organized to deal with these kinds of attacks. The creation of the Bitcoin Mining Council in the middle of 2021 will have given us a figure for the amount of renewable electricity used by Bitcoin.

This figure is an estimate, but it has the merit of existing and will be refined over time. As of June 2021, the share of renewable energy in the electricity consumed by the Bitcoin system was 56%, which is an excellent figure.

This will continue to rise in the coming months and years, and even faster now that China has decided to ban Bitcoin mining from its territory. Nevertheless, the current figure is over 50%.

But the opponents of Bitcoin don’t want to hear about the numbers. They prefer to continue criticizing Bitcoin no matter what. A currency for the people backed by the people is not something they think is a good idea. You can easily understand why if you think about it for five minutes.

Go and ask a cab driver what he thinks of Uber … You’ll see that he’s not very happy about this disruption.

With Bitcoin, it’s the same. The powerful of the current system do not want to lose their power to create money. A power that they use without any responsibility to the detriment of the majority. This is why the current system has been one of generalized impoverishment for fifty years now.

The latest fad of Bitcoin opponents who are a little more technologically savvy than others is to argue that Bitcoin should change its consensus algorithm, the so-called Proof-of-Work (PoW), to a less resource-intensive algorithm.

These people must have heard recently about Ethereum and the ongoing migration to Ethereum 2.0 which will be based on the Proof-of-Stake (PoS). This less resource-intensive algorithm would be the solution for Bitcoin to listen to them.

For those who are not familiar with Proof-of-Stake, I will quickly explain its central principle.

In the world of Bitcoin, anyone can connect to the network and decide to become a miner. You don’t need to meet any special requirements to do so, nor do you need to have any BTC. Anyone can participate.

The Proof-of-Stake algorithm establishes that a person can become a miner on the Blockchain as long as he or she owns a certain amount of coins of this Blockchain. Thus, the more coins you own, the greater your mining power will potentially be.

In the context of Ethereum 2.0, the more ETH you own, the greater your mining power will be.

So there is a significant barrier to entry, which de facto negates the decentralization of the system while placing more power in the hands of the wealthiest people. If PoS consumes less energy than PoW, it is at the expense of what is the absolute strength of Bitcoin: its decentralization.

So it is out of the question that Bitcoin should deny itself simply because opponents of Bitcoin do not understand that Bitcoin does not waste energy but prevents energy from being wasted. This is a subtle nuance but essential to understand.

The energy consumed to issue a new BTC is what makes Bitcoin so valuable. If you lose that, you fall back into the ways of the American dollar system where money can be printed out of thin air in infinite quantities.

By the way, if you look at it, the USD system is a failed implementation of PoS. A minority of people have absolute power over the system. The members of the Fed can make decisions about money creation that go against the grain of the many.

These Fed members are not representative of the people. Their power comes from an arbitrary appointment. Yet, they act with full power in their interests.

We have just learned in September 2021 that members of the Fed had, by coincidence, bought shares on the stock market by taking advantage of the liquidity injections that the Fed was making on the financial markets. The members would therefore be doing insider trading.

Instead of letting an independent commission check what is going on and punish the culprits, Jerome Powell simply said that the Fed would audit these practices internally.

You see here the whole problem with a centralized system at the time of some humans. It can’t work for the good of the many.

This is why Bitcoin must remain a decentralized system based on Proof-of-Work. This is essential, and this is what will happen for the good of the many in the years to come. The day you understand this, you will make the only sensible decision at that time: go with the Bitcoin plan.

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