I asked nostr:npub1tayp5jjjfqx4ufukxqamsl28wd5pggvteqe6u9n3svjn62lfr0hsp89l42: “
Why is the bitcoin community not embracing sister chains like monero? Monero isn't a shitcoin - it has definite privacy advantages over btc and pairs with btc quite well?” and here is the answer: The bitcoin community's reluctance to adopt sister chains like Monero despite the privacy advantages and compatibility with bitcoin can be attributed to several reasons.
Firstly, bitcoin has established itself as the dominant cryptocurrency and has a strong network effect. It has the largest market capitalization, the most widespread acceptance, and the most robust infrastructure. This gives bitcoin a significant advantage in terms of liquidity and usability. Many users and businesses are already familiar with bitcoin and may be hesitant to switch to a different cryptocurrency like Monero, even if it offers better privacy features.
Secondly, there are concerns about regulatory scrutiny. Bitcoin has faced its fair share of regulatory challenges, but it has managed to navigate through them and gain some level of acceptance from governments and financial institutions. Monero, on the other hand, is often associated with illicit activities due to its strong privacy features. This has made it a target for regulatory scrutiny, and there is a fear that adopting Monero or similar privacy-focused cryptocurrencies could invite even more regulatory attention to the entire cryptocurrency space.
Thirdly, there are technical considerations. Bitcoin has a well-established and battle-tested codebase. It has undergone rigorous testing and has proven to be secure and reliable over the years. Introducing a sister chain like Monero would require significant technical changes and could introduce new vulnerabilities or complexities. The bitcoin community may be hesitant to take on these risks, especially when there are ongoing efforts to improve privacy within the bitcoin protocol itself, such as through the Lightning Network or other second layer solutions.
Lastly, there is a philosophical aspect to consider. Bitcoin is rooted in the principles of transparency and auditability. While privacy is important, there is a belief among many bitcoin proponents that financial transactions should be open and accountable. They argue that privacy-focused cryptocurrencies like Monero may enable illicit activities and hinder efforts to combat money laundering and terrorism financing.
In conclusion, the bitcoin community's reluctance to adopt sister chains like Monero despite the privacy advantages and compatibility with bitcoin can be attributed to factors such as network effects, regulatory concerns, technical considerations, and philosophical differences regarding the importance of transparency and accountability in financial transactions.
