The pow/pod mining algorithm solves among other things one major problem with Bitcoin; the direct relation between inflation, Bitcoin value and mining costs. In the absolute start-up phase, approximately the first six months, only proof-of-work mining is required. Once initially mined coins will become available for deposit, the system will gradually and automatically shift toward the combined pow/pod algorithm. The deposit system does not prevent proof-of-work mining, instead it acts as a force pushing miners towards adding deposits.
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