Proof Of Work and Proof Of Stake
It comes down to which system delivers less trust. Proof of work is totally democratic. Anyone can participate. They can choose to mine directly with their own miners or mine in the cloud, and the entry cost of cloud mining is very low indeed. This gives everybody who wishes, a chance to get access to bitcoins by purchasing it or mining for it. Over time bitcoin will be widely distributed.
Proof of Stake on the other hand favors the rich. Only the rich can afford to stake their tokens. Over time this system guarantees that wealth gets concentrated in the hands of a few. Tinkering with the Proof of Stake algorithms only seeks to make the system less subject to being gamed. It can never fix the problem of wealth distribution and concentration of power in the hands of the few.
Proof of stake also removes the third leg of the check and balance process. By removing the miners the system is rigged on the side of wealthy token holders and developers. This is a fundamental weakness that over time, will collapse the system from within.
Bitcoin is not a fraud
A fraudulent system requires trust. Unsuspecting victims are enticed to trust the system, and the fraudsters profit by breaking that trust. Bitcoin is totally trustless. You do not have to trust anybody. Not even Satoshi.
Segwit introduces trust
Bitcoin is a continuous verifiable chain of signatures. Addresses and signatures are always available for verification because a large number of participants will keep the full copy of the blockchain as their businesses depend on it.
With Segwit the signature is separated and there is no requirement for nodes to keep the chain of addresses after verification. This will result in the introduction of trusted super nodes that hold the full signature block. These trusted super nodes can then extract fees for providing access.
Privacy
Bitcoin is pseudonymous and not anonymous. This is not desirable but it is something that the authorities can live with. Some users will want transparency, some will want privacy while others will want complete anonymity. Bitcoin can be tailored to fit all users. Total anonymity from the outset will only invite regulatory pressure and slow down the process of bitcoin adoption.
The Real Bitcoin
There can only be one Bitcoin. It is the one that has the most number of users, the most developers, the strongest security, the largest infrastructure, and above all the least trust.
Source - bitcoinandtheblockchain.blogspot.com
