Bitcoin and Monero Extremism

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Monero Pilled

I am a Bitcoin maximalist but I am also a Monero extremist. These positions aren’t mutually exclusive. In fact these two technologies combined solve the problems of the other.

Digital Cash, Digital Gold

It seems almost inevitable at this point that Bitcoin will overtake Gold as the strongest (in terms of market cap) store of wealth. Bitcoin is the new gold standard 😉 for storing wealth but it’s not very good at being money any more (just like gold). Due to high transaction fees and currency speculation it is better to not use your Bitcoin and to just HODL.

Although there are emergent technologies trying to solve this problem like the lightning network there are some issues regarding anonymity and privacy that makes traditional cash superior for transacting.

This is where Monero comes in. Being the only cryptocurrency that allows for transactions to be both anonymous and private, Monero functions almost exactly like physical cash does, except digitally and without out of control money printing.

Monero can be swapped for Bitcoin using decentralised platforms too meaning you do not require the traditional finance system to acquire it. There is also the experimental technology of atomic swaps that allows private chain-to-chain transactions to swap one crypto for another.

For these reasons Bitcoin and Monero are the only cryptocurrencies that have legitimate use cases as currency.

Utility Tokens

There are some other cryptocurrencies that aren’t shitcoins but these are mostly utility tokens such as the Brave foundation’s BAT (Basic Attention Token) and Namecoin. But as utility tokens these function as a means to an end and not as a form of savings or money.

Proof of stake - Proof of shitcoin

Proof of stake is anti-crypto. It allows for the largest bag holders to control the network and takes the decentralisation of proof of work away. Making transactions censorable and the currency defacto non-fungible.

Muh power usage

Like most energy alarmism this is a non-issue. If you understand how electric power is generated and how much of it goes to waste due to fluctuations in demand then you will see that Bitcoin actually incentivises energy innovation and prevents waste.

In fact this is demonstrated in real life Bitcoin mining practices. Countries with cheap electricity get more Bitcoin mining operations in them which brings more money into the local economy as well as incentivising said means of creating energy. El Salvador plans to mine Bitcoin using geothermal for example.

A great way to explain how Bitcoin mining reduces waste is that miners seeking the highest return on their investment will go where the energy is cheapest and most abundant, leaving the places were it is more costly and limited. This effectively allows for excess energy production in one part of the world to be utilised elsewhere by proxy.

Getting friends into crypto

Getting friends and family into crypto can be difficult. A cool trick I found is to get them to install a wallet app, send them a small amount (about $5 worth) and show them how easy it is to use by sending it back to you.

It’s better to show and not tell, especially when trying to explain bleeding edge technologies. However you will want to make sure that person you are introducing cryptocurrencies to understands the importance of self custody, securing their devices, backing up their seed phrases, etc.

Not everyone will be technically competent enough to do all of this which is fine. If this is the case then you will need to adjust as needed.

Bitcoin is easiest to get people into as it has brand recognition and is the easiest to acquire. It also has a reputation of being “internet stocks” which attracts the wrong kind of attitude sometimes.

Monero is harder to recommend to people as most people that get into crypto just want gains and don’t see the point in using it as money when they can use money. I understand this position and why it is held, which is why I generally only recommend Monero to people that are already internet present. That is not to say however that I won’t recommend it to people anyway, just that if they have no real use for it then they will be better off just buying some Bitcoin sats instead.

In fact one thing that Monero is excellent for is teaching someone the basics of how cryptocurrencies work with real life examples but without breaking the bank. It is also good at giving people an idea of how other cryptocurrencies aren’t private or anonymous.