XMR, Dash – Opaque Cryptocurrencies Are the True Long Game
The author promised some daily short picks, but you may have only a short time to pick Monero, Dash, and other privacy-centric currencies. Bytecoin is a good long-term play for big volatility, in sufficient quantities at least, depending on your risk appetite. In any case, let’s break down why these currencies have so much potential.
- Government regulation is coming. No one seems cognizant enough of this fact. There are tools in the Bitcoin blockchain that governments can use to trace transactions, and ultimately people will not like this. While this alone does not by itself lower the long-term valuation of Bitcoin itself, it does give rise to more room for speculation on the actual ceiling for tokens like XMR and Dash.
- Monero has a perpetual fixed inflation rate. This means that miners will always have incentive to mine the chain.
- Dash has found ways to modernize blockchain economics. They have what are called “Masternodes,” which play a significant role in the economy, and are rewarded for so doing. From a customer perspective, Dash is far more efficient in time and resources than Bitcoin to date, although it is built on the same codebase, whereas Monero is built on the CryptoNight algorithm and has a slightly different architecture.
We foresee governments speaking out of both sides of their mouths, but ultimately trying to take as much money from cryptocurrency holders as they can. Three agencies regulate Bitcoin and others in slightly different ways. The whole matter is intentionally confusing, so that crypto holders feel comfortable exposing themselves.
In the long run, then, currencies which foresaw the true problem of government interloping and built systems so opaque that even experienced users and hackers have great difficulty spying on users and holders, will only continue to rise in value. The valuation of Monero is no mistake. Other functional chains with higher supplies that have the same features will also see increases. That Monero is a preferred currency at dark net markets is also no mistake; they previously preferred Bitcoin. People want fungibility, and they want real, sound money. To provide these things, one cannot presume to have rights over the comings and goings of his neighbors.
Safe money will be sound money. Gold and other highly visible assets will have less utility than would say, paper or hardware wallets, in a crisis time. The long-scale value of all cryptocurrencies really lies in bad financial times, just like all real value assets. If it’s of use when nothing else is, it’s true gold. The author foresees these properties in efficient and well-developed cryptocurrencies like Monero and Dash.
Bitcoin will have its place, as well, but we are talking about the currencies that people will use in daily lives. It seems clear that more and more Bitcoin’s role is to be the top-shelf, base currency on which all cryptocurrencies take their cues. If this destiny holds into the future, others will simply also become more and more valuable by virtue of their utility and perhaps even greater offerings of privacy.