Nice take, it would be interesting to think about the societal equivalent of proof of stake would be? Blockchain mechanisms are perhaps a good metaphor, as their purpose is to achieve "balance". It might be that the equivalent of PoW is free market capitalism... back to square one.
"Free market" is an idealized model used to teach students economic principles. It is not a description of reality. Economies of scale, barriers to entry, barriers to exit, etc..
Granted.
Indeed, the freedom of the free market is only the freedom of the rich to come up with elaborate ways to obfuscate their wealth from tax authorities, it's the opposite of free access to markets. Its usually a regulatory burden required by past behaviour that they can easily manage but startups cant
The point is that under PoS there is always the possibility to earn , it's just that your stake defines what you can earn. The revenue is not so high that whales want to keep all their assets in that system. The financial system has none of thePoS restraints So it's big strength is non monopoly,
Sorry excuse my ignorance of blockchain mechanisms. Are you saying the metaphor doesn’t stretch that far? Or just there are restraints on whales in blockchain? If so, is there an analogous system of constraint that could be spoiled meaningfully in society?
The greatest limitation on runaway enthusiasm for a crypto-currency economy is IMO the skepticism of some authentically wealthy individuals like Buffet, Gates and even Cuban...But all is up for grabs so long as the Orange thing presses his campaign to destroy the full faith and credit of the U.S.
There are no comparable methods of controlling excessive spending or monopolisation in the conventional system.
But really there are almost no rules that apply to societies whales. The SEC and Monopolies/Trust commissions can only see after the fact and try to correct which implies people can will away with abuses and will just pay a fee for them. Blockchains have perfect accounting so self enforces rules