Replying to Avatar Aeneas

The concept of "tested money" is fundamental to understanding the resilience and reliability of different forms of currency. Monero is a cryptocurrency that, despite facing censorship and restrictions, continues to be used by a dedicated community. This demonstrates its robustness in adverse situations, where privacy and security are paramount. In contrast, Bitcoin, while widely recognized and accepted, is often seen as a form of money that is "carried by the state," as its stability is, in part, supported by government interventions and monetary policies that can distort its real value.

A currency that has been censored but continues to be used shows a resilience that cannot be ignored. This resilience indicates that, in times of uncertainty, people still trust and use this form of currency.

Furthermore, the issue of fixed capital issuance is crucial to understanding the deflationary nature of Monero. With a currency issuance that tends to be fixed over time, the annual inflation rate of the currency decreases as time goes on. This means that, in a scenario of increasing productivity and technology, the amount of currency in circulation does not grow at the same rate as the production of goods and services. Thus, as economic efficiency increases, the value of Monero tends to appreciate, making it a deflationary currency. This dynamic contrasts with inflationary currencies, where excessive printing can lead to devaluation.

Therefore, when comparing Monero and Bitcoin, it is important to consider not only acceptance and popularity but also resilience in the face of censorship and the issuance structure that determines their economic behavior. Money that has already been tested in adverse situations and continues to be used, like Monero, can offer a more robust perspective in a world where privacy and financial freedom are increasingly threatened.

Monero is a store of value, and if you don't know why you don't understand economics and finance enough.

#Monero

#bitcoin

#nostr

#wisdom

No other coin is battle-tested as Monero is!

Prove me wrong!

#Monero

#nostr

#bitcoin

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Discussion

I don't want to use a sov that doesn't have a supply cap.

Why?

Because if I want that I'll use the USD. I want truly deflationary sov, not a low inflation rate

Man, increasing of cap ≠ inflation.

You need to study finance and how economics work to know that difference.

Thats why most of you are trapped in a concept that you don't understand.

What if i told you Monero is deflationary? Whould you know why?

And what if i told you that a fixed cap coin can be inflationary? Whould you understand why?

An inflationary currency is one that is experiencing a decrease in value due to an increase in the money supply. That is the definition.

That would only apply if the world doesn't expande in therms of products and services availble and if the birth rate is the same as the death rate.

If you have a decrease in products and services available and the death rate be higher than the birth rate it would make your fixed cap coin inflationary.

As i said before, increasing supply doesn't mean inflation, it only means inflation if you increase supply more then the increased productivity my friend.

That's the trap that BTC maxis fall, and that's why Monero as Bitcoin is deflationary.

That's why Wownero is a thing.

How will Monero scale if it starts being used more and more?

Another way of asking: how will it not centralize once its blockchain grows exponentially?

Moores law seems ot be holding + FCMP upgrade that will drop this year enables L2s to be built on Monero