I wont margin trade this potential bubble, but i will hold my bag expecting it to happen.
I dont want to say XMR could be the next BTC, as that usually dooms any project, but i really trust in Monero fundamentals long term.
1. Ring Signatures & Stealth Addresses
Ring Signatures - To simplify it, similar to a bitcoin mixer but included in protocol and used "by default". This contributes to make A LOT harder blockchain analysis, as you can know a group of users sent a total amount of Monero, but you cannot know how much each sent and to who did it (this is combined with fractioning transactions amounts and adding "fake" inputs and outputs to the "group signature" to discourage sybil attacks.
Bytecoin was first crypto including this, and Monero was the second one and the first legit one doing it. Plus its devs have gained wide experience through these years.
Bitcoin might add it (and Litecoin will), though i dont think it is plausible as Bitcoin clearly chose the "transparecy" path, whic is great and has load of use cases, but is not the Monero project goal.
Stealth Addresses. CryptoNote generates a new address for each transaction, so you cannot easily link a user with all his transactions.
This is already possible in bitcoin (with compatible clients) but once again, privacy is not bitcoin goal. And any optional privacy feature is a no-go, as if it is optional, you will be marked as suspicious because of using it.
3. Tail emission or minimum subsisidy for miners.
Without rewards, proof of work is not possible. That is to say, you either have block rewards for miners (token inflation) or you risk to scaling fees in transactions (risking to not being competitive to other transaction methods) or lack of security.
To solve this Monero has a "tail emission" or minimum subsisdy, that avoids block reward to keep going down till reaching 0 inflation or microscopic inflation.
This will kick around 2022 and will keep Monero inflation at a REALLY SLOWLY decreasing rate under 1%.
3. Reduced inflation.
Monero had a pretty quick emission curve, but that has a positive side effect: reaching acceptable inflation rates pretty soon.
YEAR----------------YEARLY INFLATION
2015----------------65,80%
2016----------------25,68%
2017----------------12,87% -- Similar to DASH (12.69%) and Litecoin (12.5%)
2018----------------7,07% -- Under DASH (10.55%) and Litecoin (11.11%)
2019----------------4,06% -- Similar to Bitcoin (3.97%)
2020----------------2,38% -- Under bitcoin (2.63%)
2021----------------1,42%
2022----------------0,91% -- Tail emission kicks in somewhere this year
Less inflation means smaller sell pressure from miners, if the buy pressure remains and/or increases, price should increase.
2016, with an anualized inflation of ~25% was a great bull year for Monero, and placed it in the eye of thousands of crypto-enthusiasts, traders&speculators, and what is the most important: DARKNET MARKETS (all of them representing demand of monero tokens).
4.DarkNet Marketers adoption.
With smaller inflation (12% per year is already acceptable), GUI wallet, Ring Confidential Transactions and bigger and bigger market liquidity, surely Monero will threaten Bitcoin's place in the DarkNet Markets (as bitcoin has proven to be a faucet of information that can be used by govs or even private entities).
And dark markets proved the bitcoin use, and contributed enormously to its mainstream adoption. This might happen with Monero too.
I dont want to say XMR could be the next BTC, as that usually dooms any project, but i really trust in Monero fundamentals long term.
1. Ring Signatures & Stealth Addresses
Ring Signatures - To simplify it, similar to a bitcoin mixer but included in protocol and used "by default". This contributes to make A LOT harder blockchain analysis, as you can know a group of users sent a total amount of Monero, but you cannot know how much each sent and to who did it (this is combined with fractioning transactions amounts and adding "fake" inputs and outputs to the "group signature" to discourage sybil attacks.
Bytecoin was first crypto including this, and Monero was the second one and the first legit one doing it. Plus its devs have gained wide experience through these years.
Bitcoin might add it (and Litecoin will), though i dont think it is plausible as Bitcoin clearly chose the "transparecy" path, whic is great and has load of use cases, but is not the Monero project goal.
Stealth Addresses. CryptoNote generates a new address for each transaction, so you cannot easily link a user with all his transactions.
This is already possible in bitcoin (with compatible clients) but once again, privacy is not bitcoin goal. And any optional privacy feature is a no-go, as if it is optional, you will be marked as suspicious because of using it.
3. Tail emission or minimum subsisidy for miners.
Without rewards, proof of work is not possible. That is to say, you either have block rewards for miners (token inflation) or you risk to scaling fees in transactions (risking to not being competitive to other transaction methods) or lack of security.
To solve this Monero has a "tail emission" or minimum subsisdy, that avoids block reward to keep going down till reaching 0 inflation or microscopic inflation.
This will kick around 2022 and will keep Monero inflation at a REALLY SLOWLY decreasing rate under 1%.
3. Reduced inflation.
Monero had a pretty quick emission curve, but that has a positive side effect: reaching acceptable inflation rates pretty soon.
YEAR----------------YEARLY INFLATION
2015----------------65,80%
2016----------------25,68%
2017----------------12,87% -- Similar to DASH (12.69%) and Litecoin (12.5%)
2018----------------7,07% -- Under DASH (10.55%) and Litecoin (11.11%)
2019----------------4,06% -- Similar to Bitcoin (3.97%)
2020----------------2,38% -- Under bitcoin (2.63%)
2021----------------1,42%
2022----------------0,91% -- Tail emission kicks in somewhere this year
Less inflation means smaller sell pressure from miners, if the buy pressure remains and/or increases, price should increase.
2016, with an anualized inflation of ~25% was a great bull year for Monero, and placed it in the eye of thousands of crypto-enthusiasts, traders&speculators, and what is the most important: DARKNET MARKETS (all of them representing demand of monero tokens).
4.DarkNet Marketers adoption.
With smaller inflation (12% per year is already acceptable), GUI wallet, Ring Confidential Transactions and bigger and bigger market liquidity, surely Monero will threaten Bitcoin's place in the DarkNet Markets (as bitcoin has proven to be a faucet of information that can be used by govs or even private entities).
And dark markets proved the bitcoin use, and contributed enormously to its mainstream adoption. This might happen with Monero too.
Comment:
LEFT BTC/GOLD, RIGHT XMR/SILVER
Comment:
Monero cup&handle possible pattern
Comment:
Potential Cup&Handle already draw a potential handle.
¿Rebounding here?
¿Rebounding here?
Trade closed: target reached:
Monero delighted us this year reaching +60 usd, x60 my buying point... thank you monero.
Comment:
One year later monero is trading above 400 usd a unit, x400 my original entry point, x2 my last sell point and about x30 the price of this post.
