Post
Topic
Board Speculation
Re: Gold collapsing. Bitcoin UP.
by
rocks
on 18/05/2015, 19:24:37 UTC
Monero is...what Bitcoin was promised to be (but is not, and likely cannot be) - private cash, and nothing more.

What was Bitcoin "promised to be"?  How does the Bitcoin of today not fulfil the description from the Satoshi white paper?  Bitcoin is more useful than Monero because it does not force privacy upon its users.  It gives its users the freedom to choose their privacy requirements.  Cryddit (Ray Dillinger) made a series of insightful posts beginning here arguing against all but niche adoption of strong-privacy coins.

Furthermore, even if you assume that protocol-enforced privacy is a positive (which I don't), the trade-offs made to get that privacy have real costs.  But we won't fully know what these costs are until something like Monero is trading at a much higher market cap and transaction volume.  

That being said, I like Monero because (a) it had a fair launch, and (b) it offers something unique.  I would love to see it overtake Dash (Darkcoin) and then Litecoin.  But I think best-case scenario for Monero is a few % of the bitcoin market cap.

That is why I've always preferred to frame the discussion around specific properties/attributes.

Privacy has not usually been considered a core requirement for money. That is not to say it shouldn't be an attribute, it is possible that privacy was not included before simply because it was assumed in all cases in the pre-Snowden era.

Privacy is not an innate property of Gold, rather privacy was gained in how gold was used in some cases (i.e. direct physical transfer) and lost in other cases (i.e. bank notes). What this shows is that privacy is easily layered on top of a base system. In gold's case that was direct transfer, in Bitcoin's case there are already mechanism posts to this thread that enable shared secrets and private transfers, there are also others such as zerocoin sub-chains.

The point being that privacy is not an innate property of money, it is something that derives through how it is used. If that is the only advantage of Monero, then I believe at this time that Bitcoin already beats Monero in acceptance, and is the same in everything else, in which case I'll continue to bet on Bitcoin since it is superior in the basic properties of money

Edit:
Monero is better than Bitcoin in Privacy and Uniformity (fungibility), but worse in the degree to which it is Accepted (liquidity). It matches Bitcoin in the other properties you've enumerated.

By the way, Monero's privacy is by default, but privacy is not mandatory. There will be a viewkey that can be shared (not yet fully implemented), allowing others to verify one's receipts and expenditures.

As stated above, I don't believe privacy is an innate property of money, that comes from how it is used.

It is not clear how uniformity/fungibility is any different from Bitcoin.