> so it results in rich get richer In PoW, the same 'rich get richer' applies - miners can buy more mining rigs and thus it compounds the same?
In theory, if and when proof of mining actually becomes the mainstream vehicle for global financial transactions, simply buying more mining rigs won't be enough. They will need to institutionalize and reinvest heavily into their infra. The mining rig that could find ten blocks yesterday may only be able to find one block tomorrow if the competition becomes fierce. Since it's a permissionless system, if one miner starts doing it and makes a lot of money AND Bitcoin gets accepted as a legitimate payment network, other companies will enter the space and the competition will accelerate. That can't happen with PoS.
> miners invest heavily in constantly innovating and investing back into the network In PoS, is this not exactly the same, if not even more true? Stakers are by definition highly invested into the network
The difference is in continuous investment vs. one time investment. With proof of work (again, assuming when these models actually work as designed), you will need to invest more and more into the infrastructure as a miner to stay profitable. As a result the entire network becomes more and more secure. But with proof of stake, the stakers do not have incentive to compete in this manner. With proof of stake, you can literally throw around money to gain influence over a network. With Proof of Work that's not enough because you have to "keep investing", so you need actual commitment to the future. That's much stronger security than a network made up of people who only care about the present.
> PoW had decreased decentralization substantially to only happen in regions where electricity is the cheapest. PoS prevents this problem.
This is like saying "Riding car is dangerous because people can get hit by a car and die. Walking prevents this problem." There's always a solution for every problem. Even the decentralization. The only reason why that hasn't happened is because the Bitcoin network is not worth that much when it comes to its value as a payment system. That doesn't mean there is no solution. For example, using certain clever hashing algorithm, multiple miners can specialize and only do things that each location is optimized for. Mining doesn't just involve hashing. You can generate revenue through including more transactions in a block, for example.
This guy is a clear bitcoin maximalist and is making exceptions saying that anything is good for PoW and taking that same thing and saying it's bad for PoS.
A Bitcoin miner that can 51% attack the network will need a huge factory full of mining rigs. A proof of stake miner who wants to 51% attack doesn't need that.
> Bitcoin needs a huge factory. ETH2 needs a billion dollars. I feel like a billion dollars could probably buy the factory you're talking about.
What you don't get is what comes after that.
In PoS, once you invest a billion dollars, you're set for life. In PoW, you invest a billion dollars but still have to keep investing more and more in order to survive. If you're complacent, a new upstart miner with innovative technology could swoop in one day with 10x more efficient mining method (it could take many forms, such as a closed source bitcoin node that does things much more efficiently yet still fully follows the Bitcoin protocol, or it could be a closed source hardware that they don't sell outside of their own mining operations, like Apple does with their own chips) This way the PoW network as a whole will keep evolving because of competition. In a PoS network there is no competition once you invest the billion dollars and it's a complacent network compared to a PoW network where everyone is constantly competing and comes and goes (those who can't keep up will get left out and leave). If you join a PoS network where someone has a huge stake collectively, you're basically joining a feudalist society where you're being ruled by a king. If you join a PoW network you're being ruled by entities that keep competing to show their competency. it's like the presidential election is going on for every block.
That or maybe just a few colluding mining pools. The network is only 'secure' because mining cartels own most of the specialised hardware, increasing difficultly. ETH 2.0 starts to pool all that power back abit, by allowing others to compete for staking rewards.
In theory, if and when proof of mining actually becomes the mainstream vehicle for global financial transactions, simply buying more mining rigs won't be enough. They will need to institutionalize and reinvest heavily into their infra. The mining rig that could find ten blocks yesterday may only be able to find one block tomorrow if the competition becomes fierce. Since it's a permissionless system, if one miner starts doing it and makes a lot of money AND Bitcoin gets accepted as a legitimate payment network, other companies will enter the space and the competition will accelerate. That can't happen with PoS.
> miners invest heavily in constantly innovating and investing back into the network In PoS, is this not exactly the same, if not even more true? Stakers are by definition highly invested into the network
The difference is in continuous investment vs. one time investment. With proof of work (again, assuming when these models actually work as designed), you will need to invest more and more into the infrastructure as a miner to stay profitable. As a result the entire network becomes more and more secure. But with proof of stake, the stakers do not have incentive to compete in this manner. With proof of stake, you can literally throw around money to gain influence over a network. With Proof of Work that's not enough because you have to "keep investing", so you need actual commitment to the future. That's much stronger security than a network made up of people who only care about the present.
> PoW had decreased decentralization substantially to only happen in regions where electricity is the cheapest. PoS prevents this problem.
This is like saying "Riding car is dangerous because people can get hit by a car and die. Walking prevents this problem." There's always a solution for every problem. Even the decentralization. The only reason why that hasn't happened is because the Bitcoin network is not worth that much when it comes to its value as a payment system. That doesn't mean there is no solution. For example, using certain clever hashing algorithm, multiple miners can specialize and only do things that each location is optimized for. Mining doesn't just involve hashing. You can generate revenue through including more transactions in a block, for example.