Bitcoin mining is growing insanely; does PoSP solve the problem?

Bitcoin mining is a PoW consensus protocol that allows users to stake coins and earn interest. This is not a new idea, but it has been proven in other cryptocurrencies. It is also possible to mine on PoSP blocks.

An interesting aspect of PoSP is that it uses Proof-of-Stake rather than Proof-of-Work. This means that the more coins a user wagers, the more likely they are to be rewarded for solving the problem (i.e. finding a valid block).

In theory, this should increase security and make bitcoin mining less attractive. Because people can get more rewards just by storing their coins instead of buying the equipment and computers needed for mining. While that sounds good, there are many risks with this approach.

First, if an attacker manages to control her 51% of the network's hashrate (which is very common), he can easily do a 51% attack against any cryptocurrency using the PoSP algorithm. can start at Second, if the number of staked coins becomes too high, it can become very difficult for a small miner to secure enough coins to participate in her PoSP consensus protocol (this is difficult).