Monero Valuation – Update and Refocus
Monero Valuation – Update and Refocus
It only took about 2 days after I shared some thoughts on Monero valuation that I regretted doing so. Various other responsibilities have kept me getting around to sharing my updated thoughts, but I’m glad to finally be doing so now, with this note.
My regret hasn’t been so much around making an embarrassing technical omission (which I pointed out in it). Even with that, the directional and order-of-magnitude conclusions were still largely intact, it was an interesting idea to explore for me, and I’ve had some fun follow up email exchanges concerning modifications and refinements.
My regret was publicly focusing at all on an association between Monero and DarkNet/Criminal activities.
At the same time as I’m first and foremost interested in the truth, I believe that there are responsible ways to share it as well as reckless and ill-conceived ways to do so. I don't think my article did a very good job on this front.
Unfortunately, because of the unique threat that Monero poses to corrupt fiat-money regimes, it (like Bitcoin, though more Bitcoin of yesteryear.... way way back, like, in 2016...) is increasingly being targeted and attacked to try and prevent public adoption. I expect this will increase as its profile rises.
One of the main ways this occurs is to try and convince people that it is associated with ‘bad stuff’ and people should therefore stay away. Whether it’s a CNBC (does anybody even really watch that anymore?)
attractive but mindless reader of other people’s words on the
teleprompter anchor-person asking leading questions trying to denigrate it,
or stories of association with the Boogey-men of the day (“Evil North Koreans
like Monero! Boo!! Hiss!! It’s Bad!! Stay Away!!), there is undoubtedly an
active campaign to create negative associations in the public mind so that prospective
adopters don’t look more closely and realize its true merit.
By writing an article discussing Monero’s valuation potential as a ‘Dark’ coin, I unwittingly fed that association, and it’s for that reason that I regret it.
So let me here try and set the record straight.
Monero’s real promise is not its ability to be successfully used in support of illicit or illegal activity. That is a valid trait, but is a relatively minor point.
Monero’s real promise is not that it’s a coin for people who value privacy, and hate the fact that we are all routinely, continually (and illegally for the most part) spied upon by governments, their cronies and puppet-masters. That is again, a valid trait, and one that is deeply connected with the bigger story – but is still not quite ‘it’.
The big story of Monero is that it is uniquely positioned (and far more so than any other cryptocurrency – and therefore as a true successor to Bitcoin) to displace corrupt fiat money and bring back sound money.
Sound Money is a tough concept to express to the average person. Most people don’t even realize that there is anything wrong with the current fiat money system, much less that many societal problems are intimately connected to Fiat money being unsound. To name just a few of the connected issues (and without explaining them in great detail, as I do so here) they are:
- Inflation: Despite technological advances that (according the ‘futurists’ of years ago) should have us all living in a world of 3-day workweeks (or less) and material abundance for everyone… more and more people (even intelligent, hard-working people!) struggle to keep up with rising prices for homes, food, fuel, healthcare, and all manner of basic living expenses.
- Increased wealth inequality: Those closest to the ‘spigot’ of new-money creation (starting with the banks) benefit the most from fiat monetary policies. Everyone else foots the bill – contributing to our current situation where the vast majority of wealth is concentrated in a small fraction of the population… with the rate of that transfer increasing and concentrating.
- Social & Political Engineering and Interference: With an unlimited ability to create and control money, whatever projects and plans those who control the money supply desire can be attempted and/or implemented: even if they are horrible and morally reprehensible things like war, repression, and propaganda.
Monero, as sound money, has the potential to significantly contribute to the healing of much of the damage caused by Fiat systems – and it can do this by working to correct these problem closer to their root causal level. By bringing the system back to equilibrium at a very fundamental basis, social and economic systems will begin to organically reflect core adjustments.
But what is sound money? Much has been said (by me, and others) about the requirements for money to be sound… but that can be confusing for a lot of people. So let’s take a different tack and talk for just a moment about what sound money is NOT.
Sound money cannot be created out of thin-air by an un-elected, un-accountable, and often sociopathic ruling class.
Sound money cannot be used as a means to track, trace, spy-on, or control the people who use it.
Sound money cannot be used to institute a stealth theft of wealth on its user-base through inflation.
Sound money is not the result of people and efforts aiming to ‘get rich’ by launching a new coin.
Are you starting to grok me on the bigger picture? It’s not about picking what the next most-pumped ICO is so you can maybe afford that car/house/thing you currently *can’t* afford. It’s about working to correct the mechanisms of a broken system which on the one hand tells us that we live in a world where our species has conquered the elements, harnessed subtle and powerful forms of energy, and approaches creating new forms of life (organic and inorganic) … and on the other hand tells us that it’s perfectly acceptable that the vast majority of our species struggles to ’work hard enough’ to provide enough for themselves and their families without having to either go into debt or rely on handouts… both of which are so conveniently provided by the very same institutions which corrupted the system in the first place!
 That Monero is grouped along with other ‘privacy coins’ is another unfortunate obstacle that needs to be overcome. That DASH - a ‘privacy coin’ which I liken to the Club in its inability to deliver privacy - has a bigger capitalization than Monero will I think be looked back upon as nothing short of an absurdist testament to the power, albeit temporary, of deceptive and manipulative marketing.
 Note: some of these traits are direct results of adhering to the 4 positive traits of sound money: Store of Value, Unit of Account, Medium of Exchange, and Fungibility. Others are ancillary or indirect traits.
 Especially those that steal the codebase of another coin, and despite not having a meaningful developer community, relentlessly pump the rip-off. Yes, I’m looking at you Electroneum.