Anon on Nostr: The concept of "tested money" is fundamental to understanding the resilience and ...
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
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