Problems with Proof of Stake(POS) Coins

Proof of stake coins are attractive, especially early on because of the high rewards of staking. However, there is a problem with proof of stake coins that is inherent to all Cryptos but I find extremely problematic with proof of stake coins because of the way they are marketed. Many proof of stake coins only market how much percentage returns you get by staking but on both their roadmap and marketing materials they don’t have anything about how the coins are actually going to be used or adopted by vendors. This is a serious problem because if your only purpose for a coin is to stake, then everything is completely built on nothing but hype. People seem to forget that virtual money(or even cash) isn’t really useful until you buy something with it. Its not like you have wear it, eat it, drink it, or breathe it so it doesn’t have an intrinsic value. The way these coins(and all money) have value is when you actually buy something you want with it and if there no outlets to go online or go to a store and buy something with one of these coins, then there is no value in the coin itself.
If you are into an early stage of a proof of stake coin, you might think about staking for a few months and then just selling everything to reap the profits, especially if you don’t see vendor adoption on the roadmap. Without it, the price of the coin may go up until the staking rewards start to drop and then the price will inevitably drop because then there is no more reason to hold the coin at all. In fact, most of my PoS coins that I bought early this year, I will probably sell at the end of the year or at the next high water mark for Cryptocurrency market value. I will sell maybe half, if not the majority to lock in the profits and buy new PoS coins once the market bottoms out again or I will look for PoS coins that actually have vendor adoption in the timeline and make these long-term buys for me. In conclusion, don’t get fooled by big ROI numbers for PoS coins, but make sure the coins will actually have a use besides staking if you are looking for a long-term investment.


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