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.

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Discussion

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.

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.

Saberhagen The Nameless 2y ago

Yea it all depends the time frame you're looking at and when you got in. I don't think it's as simple as most pretend. You could've bought BTC near the top of last bullrun and are doing much worse than someone that bought XMR at a better time.

Also, any forecasting into the future about price is all speculation.

21seasons 2y ago

Why hold your value in something that's less secure? Why not to hold your value in something that offers greatest assurances?

21seasons 2y ago

Why hold your value in something that's infinite? Why not to hold your value in something that's has absolute scarcity?

21seasons 2y ago

Why hold your value in some system which has constant hard forks? Why not to hold your value in system that you can trust it's resistant to corruption?

LogicallyMinded 2y ago

It’s not so much the number of forks that is an issue but rather the number of contentious forks that can cause the network to split in an uncertain state (Who gets the hashpower? Who gets the brand? Who gets the ecosystem support?). As far as I can tell, there is more drama going on in the #Bitcoin community than in the #Monero community and there had been more contentious forks with Bitcoin.

The mechanisms that lead to a network upgrade on Monero and Bitcoin are similar so I’m not sure why one would be more resistant to corruption than the other.

LogicallyMinded 2y ago

I think the finite supply argument being in favor of #Bitcoin is way overblown. Personally I don’t care much that #Monero has an infinite supply the way it is implemented. The inflation will be reduced each year and it’s an insurance for lasting security.

For Bitcoin although block rewards will be emitted until 2140 or so, it’s possible that we start seeing some cracks much earlier in how the current security budget is implemented. I don’t know if this will happen in our lifetime but this question will certainly stir a lot of infighting which could easily lead to a major fork event. The finite supply of Bitcoin is a reality until it is not.

Regardless of whether the supply of finite or not, the price is determined by offer and demand. For Bitcoin and Monero, the coin emission is a negligible part of this equation and you can see it in the price action from the last bull-bear cycle.

LogicallyMinded 2y ago

I agree that “level of security” is a crucial criteria to determine the #crypto in which you want to keep your capital. I don’t doubt that #Bitcoin is a more secure choice in terms of hashpower although I’m not sure how we can really compare it with #Monero which uses RandomX. It’s possible that Monero hashpower is more decentralized than Bitcoin hashpower. On the other hand, it would certainly take less capital to attack Monero but Monero could be easier to defend since everybody has a CPU at home.

Regarding long-term security, while Monero security budget is ensured by the tail emission, there is still a lot of question marks on how Bitcoin miners profitability will be provided in the future.

Finally, privacy is a component of security as well. The fungibility of your Bitcoin funds can be more easily attacked by governments through #KYC requirements like those being deployed through the #TravelRule.

Although, this question would need to be looked at more closely, I’m not convinced that your funds are absolutely more secure with Bitcoin than there are with Monero. Both have pros and cons on this matter.