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How does PoS not artificially inflate price?

Etherum Reddit

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Before you aim your downvote cannons at me know that I'm long on eth and ada. I can't help but feel that PoS helps drive price artificially while not offering any benefit beyond PoW besides the environmental concerns of mining. I'm looking to have my opinion changed not to shit on PoS.

In order to secure the network you must buy and not sell. In fact there is great incentive to keep buying and never sell because the more you stake the more you make. The more buying that occurs, without equivalent selling, the more the price goes up. Eventually you could get to a point where liquidity dries up and the price is sky high because everyone has their coins staked. Once big exchanges like coinbase allow the average user to stake the amount staked will skyrocket and I can't see how that doesn't drive the price way up. The price should go up because the coins become more desirable for reasons other than the potential of acquiring more coins and ultimately more money in your pocket. The utility should be driving demand and ultimately price.

With PoW the miners just mine whatever is the most profitable. They don't help generate demand for the coins. When demand for the coins go up miners point more of their resources at those coins. This independence feels better to me because if everyone decides that PoW coins are worthless one day then the sell side goes way up which drives the price down and miners go out of business.

Change my mind?

submitted by /u/WhutinTar-nation
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