logic_geek

People might want to ask the question why the Bitcoin price goes down so much. One reason might be that keeping up network security is too expensive with Bitcoin (proof of work) and the miners have to sell their bitcoins to cover their electricity costs. Now if there is not enough demand for bitcoins then the price declines since miners continuously have to sell to cover costs. This also has been laid out here https://www.youtube.com/watch?v=_-TLA3j-ic4 As the guy in the video points out there is not only one way realize blockchain technology and proof of work surely is not the least expensive. Proof of stake systems mitigate the "high cost for network security problem". I suspect that one or more proof of stake systems will be part of the next round of innovation (and the next bubble) based on blockchain technology.

Someone posted this on the bitshares forum: https://bitsharestalk.org/index.php?topic=12119.msg165957#ms... This might be a solution to the problem of the potential to loose your private key.

The article makes a lot of false points but is right in one respect. It would be a fragile system without a price feed. The price feed is in place now and it works decently.