LogicallyMinded on Nostr: The number of nodes is not as important as the decentralization of the hashrate and ...
The number of nodes is not as important as the decentralization of the hashrate and the money supply. First, non-minning nodes can be sybil-attacked so it’s not technically possible to know how many unique node participants a network has. Both #Bitcoin and #Monero have a healthy number of nodes, multiplying these numbers wouldn’t add substantial value to the network. When it comes to the hashrate, it has been concentrating in the Bitcoin network which is a concerning trend. The barrier to entry is now so high that mostly nation-states like actors enter the market hence, the future decentralization of the hashpower relies on those actors competing with each others. Due to privacy features of Monero, it’s hard to know for sure how concentrated the Monero hashrate is (which can be an argument against Monero by itself) but at least participating in mining remains accessible to anyone. Regarding the money supply, it seems pretty obvious that Bitcoin is seeing greater concentration of the its money supply than Monero. This is especially true since the launch of the ETF or the growing use of intermediary hubs to transact or store bitcoins. Again, hard to tell how concentrated the Monero supply is, but its growing use as a P2P payment method and desintermediation from the banking system decreasing favor its decentralization.
Published at
2024-09-04 14:59:34Event JSON
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"content": "The number of nodes is not as important as the decentralization of the hashrate and the money supply. First, non-minning nodes can be sybil-attacked so it’s not technically possible to know how many unique node participants a network has. Both #Bitcoin and #Monero have a healthy number of nodes, multiplying these numbers wouldn’t add substantial value to the network. When it comes to the hashrate, it has been concentrating in the Bitcoin network which is a concerning trend. The barrier to entry is now so high that mostly nation-states like actors enter the market hence, the future decentralization of the hashpower relies on those actors competing with each others. Due to privacy features of Monero, it’s hard to know for sure how concentrated the Monero hashrate is (which can be an argument against Monero by itself) but at least participating in mining remains accessible to anyone. Regarding the money supply, it seems pretty obvious that Bitcoin is seeing greater concentration of the its money supply than Monero. This is especially true since the launch of the ETF or the growing use of intermediary hubs to transact or store bitcoins. Again, hard to tell how concentrated the Monero supply is, but its growing use as a P2P payment method and desintermediation from the banking system decreasing favor its decentralization.",
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