Redpill me on not mineable coins. are they a scam?

Depends on the coin. Some, like Steem, have a community backing with decentralized apps like Steepshot and dLive that push the coin forward. I've been farming up Steem since December by blogging and streaming. It's one of the few fringe cases of a PoS that actually has a use case.

But what do I know? I'm just a faggot on Jow Forums.

Yes. Also, the mineable coins are scams

not necessarily OP

dumb fuck
dumb fuck
dumb fuck
dumb fuck
dumb fuck

Mining coins is fucking retarded

>spend X on electricity
>earn X+Y
>retarded
its the absolute best way to DCA on any mining coin. Price goes down, you mine more. Price goes up, you mine less. But you always make profit. If you mine to hold its the best way to DCA. Seems to me you are the retard

>Price goes down, you mine more. Price goes up, you mine less
that's not how mining works

Omg so many noobs right now... Golden bullrun is imminent

price goes down, difficulty usually goes down too. Keyword: usually; not the case with btc.
Are you even a miner?

He's right. You don't just magically and automatically start mining less if the market price of the coin increases.

But what will happen is the incentive to mine that coin has grown, which will drive hashpower that was mining other things, to our coin in question. Which will in turn, drive up difficulty.

brainlet

Mining is only useful to suck millions of dollars per day out of the users' pockets. In return for their cash, it creates the threat of a double spend, destroys scalability, and centralizes control of the network.

>But what will happen is the incentive to mine that coin has grown, which will drive hashpower that was mining other things, to our coin in question. Which will in turn, drive up difficulty.
>Which will in turn, drive up difficulty.
which will make you mine less you fucking brainlet, holy shit you are retarded. But you're earning roughly the same in dollars cause the coin went up in price

Mining is the whole purpose behind cryptocurrencies. It literally isn't even a cryptocurrency if it isn't mined because cryptography isn't used to control the creation of new units. It's a huge problem on the Ethereum network, where almost all ERC20s are pure shitcoins conjured out of thin air. Fortunately, with the EIP918 protocol, that is slowly changing.

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why the fuck would you want to mine a token on the eth network, its just reinventing the wheel. What new does it bring to the table?

HEY HEY HEY

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Mining is a chink meme it serves no purpose except to enrich chinks with access to cheap power user

Such a fucking retard. The purpose of cryptocurrency is to solve the double spend problem. Almost any way this can be done is unironically better than paying chink electricity companies

Literal rent seeking. At least Bitcoin holders expect their coin to rise in value, they don't expect to be paid Bitcoin for holding Bitcoin.

I respect mining (proof of work) because it is the most durable and tested way to secure a cryptocurrency

However I think we can do better using other consensus mechanisms in the long run

Check out the witness system that Steem uses. Kinda different, but still fascinating.

ETH is going PoS sometime next year and the network itself will live and function perfectly fine without mining. However, PoS only rewards those who already have ETH, so it will move in an ever more centralizing manner, which does not make ETH a good currency or store of value.

Token mining allows us to have PoW mined assets that are distributed in a decentralized manner and that no one person can control on the Ethereum network.

The whole point of mineable tokens is to cut down on power consumption in the long run. Coins that have a PoW-mined base layer have to be mined forever, even if the whole supply has already been distributed, otherwise they will be rendered unusable. If you have PoW-mined second layer token on the Ethereum network, however, then you only need to mine it until all of it has been distributed. Or not even all of it, whenever the mining turns out to be no longer profitable, you can just stop mining and still use the tokens on the network, and then resume later on when mining is profitable again.

This way you have the secure distribution system of PoW mining without being dependent on the mining continuing indefinitely in order to use the coin. Basically take the best parts of PoS and PoW and combine them.

well then ETH will go down the shitter and people will drop it eventually, which means your token goes down the shitter too cause its on the Etherum network..
why not put that hashing power into other coins.. hint: there are a few gems running on lyra2z

The price of ETH might very well go down the shitter, the only reason it went as high as it did was because people were buying it in order to buy into all sorts of shitcoin ICOs that are slowly beginning to cash out/exit scam. That doesn't mean that the Ethereum network will go to shit though, since no other platform has even a fraction of the development taking place on it. ETH itself will be used as gas to power the network, but other, yet to be created assets will serve as the currency. One of the main developers of Ethereum also agrees that ERC20s make better currency than ETH itself.

twitter.com/VladZamfir/status/954819096922779649

The only problem with every wannabe currency on the network so far has been that the whole supply of it has started out in the hands of one person, and no one actually knows how fairly he distributed it. With the EIP918 protocol, we will not need to trust any central entities any more, because the smart contract will distribute the tokens via PoW mining, which requires an input of finite resources and thus can not be gamed.

Mining is retarded. Let's have the biggest super computer in the world guess useless hashes starting with 000's

50/100 years from now people will look back and be absolutely flabbergasted by the retardedness

It is admittedly not perfect, but what other distribution method would you propose?

If all coins are premined, the security is unaffected my the hashing power of the network, or attacker.
It's just the distribution that's the problem

Well that's a pretty large problem, wouldn't you agree?

t. Infernal Toast

only until the creators own less than ~10% of the supply.
after that there's no benefit to mining

I don't think he visits this shithole, but he is indeed one of the creators of the EIP918 protocol.

why would the creators ever have more than 10% of the supply? The whole point of mining is to spread the tokens as far and wide as possible and to avoid one person from hoarding a disproportionately large amount of them. As time passes, the creator's share should go down, not up.

Mining coins seems to be the best working ones. Btc eth and xmr are all successful because of mining.

With unmined coins you essentially have devs or founders with a huge supply of free money. Chris larsen of ripple basically gave himself several billion because he gave himself some 6% of xrp. Mining coins dont have this.

>hackernoon.com/consensuspedia-an-encyclopedia-of-29-consensus-algorithms-e9c4b4b7d08f

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Yes, and forks as well.

These are the only coins you should hold.

Bitcoin
Ethereum
Litecoin
Monero

Everything else is purestrain shit.

You might as well as list the entire Lightning Network

fuck off cashie.

Uhhh I'm pro-LN not sure what the hell you're going on about. Just saying that the coins in the LN will keep each afloat

0xBTC ;) /thread

There are tons of PoW coins that were pre-mined. Even Satoshi has over 1 million btc.

I've yet to see a great method of distribution. Mining sort of gets the job done, but the drawbacks that come along with it are dealbreakers.

>yet to be created assets will serve as the currency

I think we both know the asset has already been created.

yes. 90% of the erc20 tokens that biz loves are pure scams.

actual retard

shhhhh...

This

Id leave off litecoin. Shits a meme

TL;DR coins that aren't mined aren't backed by energy; energy expenditure has a floor-value whereas pajeet grantTokens(); does not

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Exactly, which a lot of people can't wrap their heads around. Is it a hard floor? No, it's soft and can certainly be broken if despair sets in. But it is a barrier nevertheless, which helps keep a coin afloat if enough people believe in it but not enough people are currently buying.

>not mineable coins
It's not mineable TOKENS, not coins.

Mining is already outdated and way to expensive for what it is.

yes, all of them.

Tokens, these days, refer to ERC-20 tokens.
Also, OP, do you consider shit like Bitcoinereum or Minereum to be mineable? Cause that pose a whole new problem.

Or do you just mean PoW? I agree with this definition if you do.

think about this. how will 1 link token. one single link token with 18 decimals have more utility than 1 gallon of gasoline. you can travel 22 miles on the highway with 1 gallon of gasoline but what can will 1 single link token get you? i am talking one token. you own 1 chainlink token what good is it? my point being if you can not figure out why having 1 token would be valuable, having 50,000 tokens won't be either. If you can not do anything with 1 token what makes you think having a bunch of them is going to do? think for a second. do you understand why we fight wars over oil? because it is a true utility good.