Why Nostr? What is Njump?
2025-04-04 15:11:02
in reply to

TheBitcoinBattery on Nostr: Monero's monetary policy doesn't drive value growth of the underlying token like ...

Monero's monetary policy doesn't drive value growth of the underlying token like Bitcoin does.

The equation for value:

Time Value * Energy Value = Total Value

The more time and energy something costs to create, the more value it contains.

Bitcoin's issuance policy simply doubles the time required to create a Bitcoin every 4 years, the market typically doesn't value twice as much overnight however. Often the energy drops a bit to compensate before it recovers (we see this with hashrate changes around the halvings). This doubling of the time value with virtually unchanged energy value doubles the outputs total value. This is a principle driver that drives Bitcoin higher over time, and attracts greater relative investment than anything else on earth over time.

Monero's monetary policy dictates a flat permanent tail emission of 0.3 Monero a minute. It's never revalued against time, and doesn't attract the same level of interest or investment as a result. Monero will never replace Bitcoin. The economics make it impossible.
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