I appreciate this very thoughtful and thorough answer. And ...

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2026-08-25T16:06:28Z

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I’d answer it this way: a good money needs to satisfy two distinct forms of demand: it must be able to hold value well, thereby satisfying reserve dem...

I appreciate this very thoughtful and thorough answer. And I agree with most of it. Your simple paragraph of the negative side of the trade-offs monero makes is quite good.

Where I believe we differ is on the current state of Bitcoin and the implicit state of it in the future. I agree Bitcoin is being used for all kinds of tomfoolery and silliness with blocks full of transactions that are out of sync with the purpose for which it was originally developed.

It's interesting, continuing to contrast Monero to Bitcoin, some of the reasons the former has emerged currently as a superior transactional money are exactly those same reasons.

Monero is actually being used as transactional money because it is more fungible as well as private. Ordinals on Bitcoin, for example, require a transparent base layer. You couldn't really do those on Monero. Its design makes that impractical if not impossible.

You said Bitcoin is mainly used for speculation. I think that is ignoring the store of value property that Bitcoin is also doing quite well at the moment. People complain that a good store of value is not volatile. But I almost think that's economic propaganda more than truth. Bitcoin is still bootstrapping, and in the last decade and a half its volatility has been diminishing.

I foresee that once Bitcoin has established itself as a trustworthy, worldwide, trust minimized, decentralized asset, that transactional uses will follow naturally. Of course, most of these will not be on the base chain. That has always been true since the moment of Satoshi's first email. But these are just computer science problems. Some solutions already exist.

I believe Bitcoin's transactional use will outbid the spam in the end. And I believe that SOME data on the chain is important for things like transactional systems to be built on top of it. (honestly, I think op_return just being large enough for a a few hashes to be stored is probably enough, but...)

Bitcoin's design originally and with the people who have carried the torch since the beginning has prioritized its continued decentralization over its transactional use. I think this is the right decision.

If Monero's use grows to the point that it is being universally used transactionally, its blockchain will become huge. And it will centralize.

But since we're not there yet with either Monero or Bitcoin, Monero has the advantage.

The reason I'm engaging with you is I have enjoyed your posts ever since I've been reading them and I share a lot of your views. I've also been in the Bitcoin "space" for a long time. I've seen good people branch off into other projects, not chasing after the latest shiny thing, but because they believe there's a mistake being made. Bitcoin Cash and several others frankly. Monero did not start that way, but it ended up there too.

But I think any blockchain-based cryptocurrency is going to face the same problems. And a lot of work has been done on Bitcoin to begin to solve those problems. It is also the clear schelling point in this whole realm.

I agree that parts of Bitcoin's development have been bad choices, particularly recently.

But I also believe we're not going to get another chance at this. And I think we must be careful not to let the perfect be the enemy of the good. As much as I respect Luke Dashjr, I believe that's what he's doing.

Anyway, if you read all this, I appreciate it. And, again, I appreciate your heartfelt, articulate thoughts.

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