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RE: Why I am Very Disappointed by the Upcoming V8 Removal of the Magnitude Component of the Gridcoin Staking Weight
How does this affect solo vs group mining? Why would one solo mine vs group mine and what is the switching point?
Solo investors will stake more frequently, the pool will likely stake less frequently however they no doubt have enough grc in reserves to stake with in a timely fashion.
Switching from pool to solo -> the point is to help secure the network yourself, getting voting rights, maximum decentralization.
If you're in it to mine and earn coins none of that really matters. the voting power is minimal compared to the big guy. Users won't mine if they don't think it's secure. Decentralization follows the same reasoning. What's the reward for helping securing/decentralization with V8?
Edit: is that the 1.5 % apr?
Group mining gets you paid more frequently in V8, assuming the pool will hold a large reserve balance to stake. Solo mining will see a vast reduction in payment frequency.
I guess more users care about frequent payment instead of 1.5% apr. At least I do with a coin I find harder to trust due to several factors. That way I can move earnings somewhere I trust more. End result: even less secure coin.
Cryptocurrencies are trustless by design.
I don't believe that if you use a pool or sell your grc that contributes to a less secure gridcoin network.
Every currency only works because of trust. I don't think my personal preference makes a difference. But if everybody turns to the pool it would.
Perhaps FIAT currencies where you trust a bank to exchange cash for the real monetary value of the notes, but in crypto trust does not enter the equation.
Sure it does.
What will happen if people do not trust Bitcoin anymore? Well they won't buy it anymore en people owning will be selling. No demand and plenty supply means the price will drop en the coin will be worthless.
The only difference between fiat currency and crypto currency is that fiat currency is centralized government controlled whereas crypto is decentralized en controlled by the community. They are both based on trust.
That's nonsense. Why are shops using bitcoin and not some minor altcoin? Even when looking at it as an asset you're wrong. Trust is one of the major aspects.
Cryptocurrency is not trustless. Blockchain is trustless. Cryptocurrency working depends on lots of trust, from the dev(s) down.