How much did it cost to create a Proof-Of-Stake coin? Give me a dollar amount on how much it’ll cost me to create a protocol like that, my own blockchain with my own staking token. My background is in computing systems and I have an unlimited amount of programming time on my hands – what is my barrier to entry to enter this market?
Bitcoin not only cures the cancer of central banks expanding the money supply with zero cost, it also cures the cancer of altcoins entering the market and expanding the crypto supply. I don’t care if your cryptocurrency has a 0% inflation rate, if its existence has minted a new blockchain that expands the amount of cryptocurrencies in circulation, then it is cancer equal to fiat. Bitcoin is the cure to two forms of cancer.
Ethereum and Cardano is growing tumor that knows it cannot compete with Bitcoin’s absolute hard money principles. They are going for the back-hand approach, attempting to become a medium of exchange before becoming a store of value. By getting enough people to use their tokens as a medium of exchange, by token-swapping, DeFi, staking, and using the protocols built on their platform, their gamble is that uneducated users will decide that “if I use this cryptocurrency so much, I should just park my money here!”
This is the exact same strategy the U.S. Government and all other nation states use to get their citizens to use their currency. Fiat is absolutely not a store of value, but it is a medium of exchage as that is the means of transferring value in a society where only one form of cash may exist to pay taxes, to earn income, to make commodity purchases, and to conduct capital investments. However, nobody on this planet wants to hold fiat, they pass the potato around in broad money markets because it does not have the store of value principles set in stone.
Ethereum and Cardano is doing the back-hand approach the same way fiat is valued, by monopolizing as many crypto-use cases on their platform as early and as fast as possible to cement a medium of exchange monopoly. Then, at the last moment when they’ve on boarded enough infrastructure, they change the inflation rates to near 0% cementing it as a store of value. Double the bonus if they do this a few years after an enormous premine and investor ICO which prevents their premine stake, between 50% to 80% of the total outstanding circulation, from ever being diluted again.
Only problem, is that doing this exact strategy means that any cryptocurrency token can do the exact same approach: Create a smart-contract blockchain protocol that has an enormous pre-mine to fund developers and create incentives to use their platform, centralizing blockchain infrastructure on their protocol, and then switching the inflation to 0% to become a token that people hold. Even better if the token has an inflation rate, and the only way to offset that inflation is by staking your tokens to earn interest, punishing capital that is not in the pool.
This will become the way to “expand the money supply” of cryptocurrencies 10 years from now. What matters is not what the inflation rate of each cryptocurrency is. What matters is how aggressive each cryptocurrency tries to onboard developers to use their protocol, and get users to use their platform as a medium of exchange and then pushing the narrative that they adopt it as a store of value. This is so profitable of a strategy with so little capital risk to attempt it, especially since the core code is public, there will literally be billions made out of thin air by copying and pasting this strategy in the order of thousands. And investors are none the wiser.

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