Ah your are right there. Thanks for the hint! It would be correct to say that the delta between the blue and the yellow line is the price drop of BTC and the delta you mentioned is the price decrease in BTS. So we are on the same page here.
The answer I guess is that it has not anything to do with DPOS directly. Marketing was not done well with BitShares to this point (the marketing directors has been fired). And there were delays with respect to 1.0 status of the client. People thought that a stable 1.0 version would come at the end of 2013 as well as marketing which depends partly on 1.0 capabilities.
The point the OP made is that LONG TERM the circumstance that miners have to sell their coins to fund their operations and the associated dilution of btc holders by which miners are paid will take effect. Short term speculation will always overrule this long term efficiency problem as it is the case with BTS at the moment.
You may take a look at two marketing initiatives BitShares has started as an answer to the problems above:
http://tv.bitshares.org/ and
http://bytemaster.bitshares.org/ Thanks for admitting you were wrong. So I suppose we can agree that kokojie jumped to the conclusion and we don't know if DPoS is more efficient than PoW because others could point to this historical data and show that the inflation that occurred to support the delegates was the reason for the price decline relative to Bitcoin and that DPoS security model depends more upon social methods with delegates and election process and Bitcoin more upon ASICs/electricity to achieve security.
So we still don't really know unless this reverses itself and we start seeing trend lines of Bitcoin dropping to multiple PoS DPoS coins .
You are welcome. It is all about coming to a better understanding together! That is the value of a discussion for me.
I think it makes sense to keep two things apart: The technical discussion about what algo is more efficient and what the market prices things at.
The market does not only consider efficiency of the algo and is often not very rational anyway (at least in the short run).
Is DPOS more efficient? Depends on your definition of efficiency. I think we can agree that efficiency here can be defined as security per cost. We debated a lot here what is more secure and it seems impossible to agree on what is finally more secure. I argued that DPOS is more secure at scale since reputation (of delegates) is something that can be very very valuable (especially if delegates are not only individuals big corporate entities that value their reputation a lot) but does not have direct costs (like burning electricity).
What can be observed as a fact though is that the network security costs of Bitcoin at the moment are far higher than for BitShares, in total anyway but also in relative terms: Bitcoin has a ~ 10 dilution per year, BitShares has a ~ 1% dilution per year. This 1% is mainly due to paid developer delegates (
http://www.reddit.com/r/Bitcoin/comments/2qv3rt/i_turned_down_an_offer_from_google_to_be_the/). It would be about pretty close to zero (I guess ~ <0.1% dilution) if delegates would only be there for security like miners are paid with 10% newly issued coins per year also only for security and not for developing....
Additionally, if we want to be fair, even if all DPoS and PoS coins weaken against bitcoin over the next few years it doesn't prove PoW is superior to DPoSTaPoS for security as Bitcoin could simply perform better because of the network effect and first mover advantage regardless of whether it is more or less efficient.
It is really cool all these tests with DPoS and PoS are happening regardless. Nxt and Bitshares have proven they have real development and developers backing them unlike paycoin2 ponzicoin.
It is great to see that we agree on this part
That was exactly what I was saying with "the market also considers other factors aside from efficiency and that efficiency is more a long term consideration".
