Stability is seen as tracking inflation. Cryptos don’t do that very well as they have huge variation during bull and bear market cycles which last one to three years. If you buy the top of the market you can expect to be underwater for at least two years. Cash is stable on the short-mid term but always lose value in the long term. So far the goldbacks have been rising with inflation quite nicely. Only during covid their prices became irrational.m for a little bit.
The recent crackdown on #Bitcoin #privacy tech reminds me of the wave of naturopaths who died in mysterious circumstances before the launch of the #Covid19 program. I think it’s the prelude to the launch of the #CBDC / #DigitalID program. Biden has recently signed an Executive Order on digital assets which discuss both #crypto and CBDC. Soon after federal agencies have been taking the actions that we all know. This tells me that the plan was already ready to go and not a consequence of the EO being signed. IMO, the plan to roll-out the CBDC is also ready to go… I’m not sure how much time we have left until the launch but I’m afraid it’s closer to months than years.
It’s not okay and it’s probably coming in the US sooner than what people expect. The solution is to grow a circular economy based on alternative uncensorable medium of payments such as crypto or goldbacks. Holding some of those instruments is necessary but not sufficient.
Let’s rank #Bitcoin, #Goldback, #Cash and #Monero to determine which one is the best store of value.
Scarcity: The supply of the store of value should be limited to maintain its value. For example, gold, Bitcoin, or other commodities with restricted supplies.
Bitcoin -> 3/3
Goldback -> 2/3
Cash -> 1/3
Monero -> 2.5/3
Stability: A store of value should maintain its value over time, ideally with low inflation or deflation. For example, assets like gold, real estate, or certain types of bonds can serve as stable stores of value.
Bitcoin -> 1.5/3
Goldback -> 2.5/3
Cash -> 1.5/3
Monero -> 1.5/3
Durability: A store of value should have a long lifespan to ensure its worth doesn't diminish over time. Precious metals like gold and silver, as well as digital assets like cryptocurrencies, typically possess this characteristic.
Bitcoin -> 2.5/3
Goldback -> 2.5/3
Cash -> 2/3
Monero -> 2.5/3
Portability: The store of value should be easily transferable from one person to another or from one location to another. For example, physical assets like gold or silver can be transported, while digital assets like cryptocurrencies can be sent through a blockchain network.
Bitcoin -> 2.5/3
Goldback -> 1.5/3
Cash -> 1.5/3
Monero -> 3/3
Divisibility: The store of value should be divisible into smaller units for practical use. For example, gold can be melted down, refined, and minted into smaller coins or bars, while cryptocurrencies can be divided into smaller fractions.
Bitcoin -> 3/3
Goldback -> 1.5/3
Cash -> 2/3
Monero -> 3/3
Acceptability: The store of value should be easily recognizable and accepted by others. For instance, gold, silver, and fiat currency are universally recognized and accepted.
Bitcoin -> 2/3
Goldback -> 1.5/3
Cash -> 2.5/3
Monero -> 1.5/3
Total #StoreOfValue ranking:
🥇 Bitcoin -> 14.5/18
🥈 Monero -> 14/18
🥉 Goldback -> 11.5/18
4th Cash -> 10.5/18
Do you agree? Let me know if you think I got it wrong.
#SoV #BTC #XMR #golbacks
Is #Cash a good store of value? Store of value can be ranked according to the six following properties:
- Scarcity: no-capped supply and no predictability of the supply over time.
- Stability: continuously loose value against an inflation index but quite stable over short period of time.
- Durability: good durability, hard to lose, not indestructible.
- Portability: good portability, except for online payments and cross border migration.
- Divisibility: good divisibility but not flexible. Loss of value against inflation guarantees that current divisibility will suffice.
- Acceptability: great acceptability within national borders except for online payments. Used as a unit of account.
Is #Monero a good store of value? Store of value can be ranked according to the six following properties:
- Scarcity: no fixed supply but predictable supply through tail emission.
- Stability: higher stability than most crypto but still volatile during bull/bear markets.
- Durability: good, although hack and key mismanagement presents a risk of loss.
- Portability: great portability. Higher than Bitcoin due to dynamic block size guaranteeing low fees.
- Divisibility: yes, but currently fixed and hard-coded. May require to be updated as prices keep on rising.
- Acceptability: good but not as good as fiat currencies within a country of acceptance. Also this property is being challenged by delistings and shutting down of on and off-ramp services.
Is #Cash a good store of value? Store of value can be ranked according to the six following properties:
- Scarcity: no-capped supply and no predictability of the supply over time.
- Stability: continuously loose value against an inflation index but quite stable over short period of time.
- Durability: good durability, hard to lose, not indestructible.
- Portability: good portability, except for online payments and cross border migration.
- Divisibility: good divisibility but not flexible. Loss of value against inflation guarantees that current divisibility will suffice.
- Acceptability: great acceptability within national borders except for online payments. Used as a unit of account.
Is the #Goldback a good store of value? Store of value can be ranked according to the six following properties:
- Scarcity: No capped supply but restrained by gold availability and capacity of production.
- Stability: good stability relatively to an inflation index. Has seen occasional and short term periods of high volatility due to surge in demand (during Covid).
- Durability: good durability, hard to loose but not indestructible. Can be replaced for new #goldbacks.
- Portability: similar to cash. Not good for online payments and cross border migration (unless using a custodian).
- Divisibility: correct, but not flexible and lower denomination will keep increasing with the price.
- Acceptability: growing network but not high rate of acceptance yet. Still higher rate of acceptance locally than crypto by merchants who accept neither of them.
Is #Bitcoin a good store of value? Store of value can be ranked according to the six following properties:
- Scarcity: yes, Bitcoin has hard-coded scarcity.
- Stability: stability increases after each cycles but overall, Bitcoin isn’t a stable asset. You can’t buy bitcoin at any time and expect its value to remain around the same level relative to an index tracking inflation.
- Durability: yes, although hack and key mismanagement presents a risk of loss.
- Portability: great portability.
- Divisibility: yes, but currently fixed and hard-coded. May require to be updated as prices keep on rising.
- Acceptability: good but not as good as fiat currencies within a country of acceptance. Also this property is being challenged by AML/KYC procedures.
The recent crackdown on #Bitcoin #privacy tech totally killed the medium of exchange use case for #BTC. Nobody wants to use a #crypto as a medium of exchange in a non privacy preserving way. There is still #lightning and maybe silent addresses can help a bit but these will be good enough for most people.
A good way to spend your Monero but I’m afraid those aren’t going to be around forever. Cards providers have to comply with AML/KYC regulations and touching any crypto services is a risk.
I have been suspicious for a while about #Saylor being a plant to divert the community and control the #Bitcoin narrative but after watching this video, there is no doubt in my mind that he’s one. https://youtu.be/nXQWj6P0P1k
Nice new video production from Samuel Rivera featuring #JoeRogan once again.
#Propaganda #CultureWar
No I have not but it seems to be working well from what I’ve heard.
I don’t know what they currently use but I know they have plan to use #SeraiDEX (not launched yet) which is similar to #ThorChain with the support of #Monero.
I have no doubt that the tech once well decentralized will be out of reach of governments but we should not forget that to make the tech relevant we also need to win the social consensus. Those working for the power structure are masters at brainwashing people. It’s not going to be an easy fight but we have the truth and reason on our side.
#Bitcoin #Crypto
It would say the main difference is that atomic swaps are more secure but less user friendly (less liquidity). You don’t keep custody of your funds when swapping on #ThorChain. Also, in this particular instance, ThorChain doesn’t offer #Monero as an option
I wasn’t trying to draw a comparison with #ThorChain and I don’t think there is anything wrong with it. Although, it’s a different security and privacy model.
Listen to Dr Kap claiming that #CBDC could technically be integrated to decentralized atomic swap DEXs such as #BasicSwap so you can trade your slave money for freedom money such as #Monero. I suspect it may impact your #SocialCredit score but at least you get to spend your money privately! https://odysee.com/@Decred:c/decred-is-coming-to-basicswap-dex:b
The CBDCs? It’s almost certain. But my is point is that although you won’t be able to buy anything you want with CBDCs, crypto isn’t going to make us freer if we can’t buy those forbidden things with it. Dark markets will still exist and will provide additional freedoms to this extent but we need to grow adoption beyond those niche use cases, in the local/regular economy so to speak.