Motley Fool analyst Eric Bleeker, Motley Fool lead crypto advisor Bernd Schmid, and Motley Fool contributor Chris MacDonald discuss whether Monero on this clip from “The Crypto Show” recorded on Nov.
It’s a privacy coin that aims for additional layers of privacy I think for investors out there who have been crypto adjacent or watching this space for a long time.
I’m not sure if this is still about the narrative, not anymore, but people used to think Bitcoin is anonymous and it’s dangerous and all these obscure actors, which definitely they were there in the beginning.
If you buy a coffee from me, for example, I can look up your address.
I think in many cases you should argue that for day-to-day transactions, you actually don’t want everybody to have a look inside your wallet and know inside your bank account and observe anything that you do.
But even right now there’s companies out there who actually tried to match faces, so to say real people to address, like rich people or maybe companies like Michael Saylor of MicroStrategy .
The older ones they used to copy the Bitcoin code and amended it, changed a little bit to add these privacy features and other features, and Monero didn’t do that, they wrote the whole code base by themselves completely from scratch, so it’s not a Bitcoin folk, so to say, and then they implemented all these features which they think are useful.
If someone wants to analyze something, understand where an section came from, or there is a malicious act or criminal also.
The second thing that Monero I think does better than Bitcoin is that Bitcoin will have these mining rewards halve every four years the rewards that the miners who secured a Bitcoin network receive is cut in half.
First of all, it’s not the halvening cycle where you have this disruption from the second ago to now, you suddenly get only half the reward than you got before for the next four years.
But I think that’s not important as I don’t see Monero as a Bitcoin competitor because I see Bitcoin more as a store of value but Monero could really become the cash replacement for potential in a digital way.
I think the same thing goes like there’s a basic level of privacy that people expect with the crypto world and the fact that, let’s say Bitcoin is so hoping and you can see which wallets transacted with which wallets, can pose a problem.
But if you’re a business and you want to do business completely over the blockchain and you say, I have a coffee shop like Bernd was saying, and I want to sell coffee to somebody, well, when you pay your supplier, the other suppliers can see what you paid that supplier, so you’re opening up your price sheet to everybody.
When you sell a coffee, people will see what they paid for that coffee, so there’s no ability really to, or it makes it more difficult to raise prices or to negotiate.