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What about Monero (XMR)?


Every coin has its pros and cons, and so an unbiased objective take is impossible. Cryptocurrency is a free market of ideas and voluntary involvement, and the best coins must prove themselves in it, including BCH. Readers are encouraged to explore the communities, apps and events that other coins have to offer and hear both sides of the argument. However, as a candidate for being the global reserve currency, other coins tend to have serious flaws that make them a less viable candidate than BCH.

The Monero community is perhaps the closest ideological cousin of the Bitcoin Cash community, and there is significant cross pollination of users and ideas. Both coins focus on optimising as much as possible to the fundamental principles of money and being a peer-to-peer electronic cash. Monero users are heavily focussed on privacy protection, as that is built into the core protocol, and frequently highlight the improved fungibility of XMR vs BCH or other coins. This also leads to it being regularly used on darknet markets, which may be a leading indicator for adoption similar to the ways that Bitcoin in its early days was used the same way.

However, these advantages come with significant trade-offs, that make global adoption of Monero very very unlikely.

  • Inaudibtable supply: Monero advocates will claim that the supply can be mathematically audited, but what they miss is that the difficulty inherent in people understanding the complicated maths around that concept makes it less likely to be adopted when compared to the inherent simplicity of Bitcoin's 21 million publically known coins. The mathematical possibility of an audit is not as important as the simplicity of convincing new adopters that the system is fair and works as promised. There is also an increased chance of unnoticed software bugs creeping into XMR nodes (which increases in proportion to increasing node software diversity - a negative incentive), and while the likelihood or degree to which this is a problem is subject to debate, there is no debate that it is a higher chance than for a very easily verifiable supply currency such as Bitcoin Cash. Given that scarcity of supply is a critical component of cryptocurrency's monetary properties, this decrease in verifiability is a big issue.
  • Inability to do public accounting: Increased privacy and fungibility is a great thing, but in the case of Monero it explicitly cuts off the ability to do publicly verified accounting. This is frequently useful for example for cryptocurrency-based charities or for public funding of node infrastructure (for example, BCHN releases public reports of their donation-income spending). BCH allows for both transparency or privacy where suited, while XMR gains increased privacy at the cost of the option for transparency.
  • Regulatory pressure: Although government can't stop cryptocurrency, they can choose where to distribute their efforts to slow it down. So far, they have placed inordinate amount of resources against Monero (and some similar coins), leading to it being delisted from many consumer-friendly cryptocurrency exchanges. This greatly decreases the ability for the coin to spread among end consumers, especially relative to other coins competing in the "cash" use case.
  • Global scalability: Due to the obfuscated nature of transactions, blockchain pruning is not an option for Monero. This severely limits its ability to be used at global scale with large numbers of running nodes to ensure decentralisation. More discussion of this issue here.

The BCH community is heavily committed to privacy and fungibility as a core tenet of sound money. However, it has a different approach to the Monero community.

See also: What about privacy on BCH?

See also: Why Bitcoin Cash instead of another cryptocurrency?

See also: Nothing is perfect, why NOT Bitcoin Cash?