PoS coins are becoming more popular among users
PoS coins open up opportunities for different types of earnings
PoS coins, like PoW coins, have their drawbacks
International consortium of news organizations developing transparency standards.
The cryptocurrency market is developing rapidly around the world. To date, over 7,000 coins are traded on exchanges, which can act as both a means of payment and an investment instrument. And more recently, PoS coins are gaining popularity, which are able to generate profit simply from storage. In fact, staking or blocking cryptocurrencies in order to generate passive income can compete with bank deposits. Stanislav Itkin, CEO of ZYX Network cryptocurrency, told how the PoS coin market will develop in the future..
– Stanislav, what are PoS coins and how they differ from other coins?
S.I .: Let’s start simple. In the crypto world, there are several protocols on the basis of which coins can be created. The protocol is actually the scenario by which the coin operates. So, today the most popular protocols for cryptocurrencies remain Proof-of-Work (PoW) – proof of work and Proof-of-Stake (PoS) – proof of ownership or proof of stake. The method of protecting information, the type of mining, and a number of other factors depends on the chosen protocol. For example, on the PoW protocol, coins such as bitcoin and all its forks, token were created. As the use of cryptocurrencies grows, new types of tokens appear. They can represent value or something intangible like voices. Two … More ETH, Binance exchange tokens, as well as altcoins such as Dash, Monero, LTC and others. These coins cannot participate in the staking program and are not able to generate passive income for their holder. Coins such as XRP, EOS and our ZYX Network coins are created on the PoS protocol. Such cryptocurrencies are capable of generating passive income through a staking program, as well as being used as a trading or payment instrument. Such coins are characterized by rapid adoption by a wide group of users, as well as mining without special equipment..
– It turns out that you don’t need expensive ASICs or video cards to mine PoS coins.?
S.I .: Exactly. PoS mining is done in a completely different way. Miners do not need to buy expensive equipment, and the price of an ASIC – a computer for mining bitcoins – can reach 3-5 thousand dollars. Add to these costs the payment for electricity, air conditioning, renting a place – the amount is serious. Of course, large industrial mining companies can afford it, but it’s hard for a retail miner to follow the industry and adjust to it by constantly buying new hardware. The generation of PoS coins and blocks is completely different. It’s simple – the more coins you have in your wallet and in the wallet of miners from the mining pool, the faster new blocks of coins are generated and distributed among the miners, in proportion to their contribution to mining. In practice, it looks like this. Let’s say there are 5 people in the mining pool who invest in the coin and therefore in maintaining the network. The contribution of one of the miners is 50% of all coins, and all the others in the proportion of 30%, 10%, 5% and 5%. Therefore, the coins of the next mined block will be divided among the miners in the same proportion. One block can contain from 12 to 1000 coins.
– What is staking? Why is there so much talk about him?
S.I .: Staking is actually an alternative to a bank deposit. The user makes money by simply holding coins in his wallet, and the network itself uses your coins for transactions and other purposes. A staking participant receives a percentage of the transactions carried out. Terms and conditions and premiums may vary depending on the coin.
– How else can you use PoS coins??
S.I .: PoS coins, like PoW coins, can be used as a means of payment if the company is ready to accept cryptocurrencies. For example, the ZYX Network coin can be used to pay at iVendPay terminals
– The benefits are clear. And what are the risks?
S.I .: Like all crypto coins, PoS coins also carry risks to be aware of. The most important is the volatile price. Since cryptocurrencies are a decentralized, that is, an independent, investment asset, many factors can affect its price: from technical, for example, DDOS attacks, and others, to social and economic ones. I recently read an interview with one of the Ethereum developers who is directly involved in the development of the second version of the platform and the transfer of ETH tokens from PoW to PoS. So, he said that if the ETH falls in price, then the holders will not be able to profit from staking, and they will also not be able to sell the coins blocked in the account at the peak of their value. Perhaps these are the two main problems with PoS coins. Yes, by joining the staking program, you cannot withdraw coins whenever you want, even if the price of the coin has reached its maximum. And there is a problem with that. However, experienced investors know how to predict and mitigate such risks by staking the currency basket. In this case, if one asset falls in price, then the profit from other assets covers the damage.
Cryptocurrencies are as effective a tool for earning money as investing in stocks, real estate, gold, etc. You just need to be able to use it and calculate your strategy several steps ahead..
– Do you invest in cryptocurrency? If so, which one?
S.I .: Of course I invest. First of all, I invest in popular PoS coins.
I also invest in bitcoin and some of the top 10 altcoins. That is, this is the same cryptocurrency investment basket that I talked about earlier. This is a proven way to make money on crypto investment, which I have personally tested on myself. We will offer this product to our partners – investment funds, stock exchanges.
I also use the ZYX Network to pay for goods. I live in Europe, and here payment with cryptocurrency is quite common in comparison with the CIS countries. But I am sure that these tendencies will also reach the states of the commonwealth. It just takes time.
– Thanks for the conversation!
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