Subnostr

I’ve heard many bitcoiners say that it’s okay to use #Monero to pay for things (because it’s private) but you shouldn’t hold #XMR and that you should hold #BTC instead because it’s a better store of value.

I disagree. If you look at the BTC/XMR chart in the last bull cycle, you’ll see that Monero has performed about the same as #Bitcoin as a store of value.

As such, I think a better strategy is to hold XMR and use it for payment while trading BTC which is likely to be an asset with more trading opportunities.

Why would you want to hold BTC rather than XMR when they both do about the same as a store of value while XMR is a superior medium for payment?

The only case I see for holding BTC rather than XMR is that a spot ETF will be approved which would likely bring a massive influx of capital into Bitcoin but even then, it’s unclear if BTC would end up being a better store of value (since we may see similar massive outflow during bear markets). It may still be a better strategy to mainly use BTC as a trading vehicle.

Cyber Seagull 2y ago

Liquidity and risk. I like monero a lot, but price movement in a larger asset takes more energy for less change.

If Btc is at 10,000$ and you have 100$ in it, if it loses 5% value you lose less than 100 dollars in XMR at 200$ each that loses 5%.

5% loss in Btc is larger in nominal terms, but not in your share.

Pushing an elephant is harder than pushing a rhino.

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Discussion

LogicallyMinded 2y ago

I’m not sure I understand the math from your example but to your point “price movement in a larger asset takes more energy for less change”, while I agree in principle, #BTC and #XMR have seen about the same price movement in the last bull/bear cycle. Also, #Bitcoin is a lot more leveraged than #Monero which offsets the fact that Bitcoin takes more capital to be moved.