Why Bitcoin is terrible and Monero should be the coin of choice

This was originally a comment, made it a post to get more feedback. Did I miss anything on this list?

  1. Fixed block size means that when the blocks fill up people start bidding up the fees dramatically. You can see this in action here:

https://bitinfocharts.com/comparison/bitcoin-transactionfees.html#alltime

  1. Once fees start ramping, small outputs get stranded because they are worth less than the postage. People who “stack sats” are most at risk of this, since they will have a lot of small outputs due to frequent buying unless they do consolidation transactions every so often.

  2. Open ledger means that when you send money to somebody, they know your wallet balance. It is fairly easy to cluster wallets unless you are careful, so they can figure out all of your wallets.

Pay a supplier, they can figure out all your other suppliers and how much you pay them.

Pay an employee, ditto

Pay your bar tab, the bartender knows your bank balance and her boyfriend mugs you when you leave the bar

Pay a prostitute and your mother and they will know about each other via the link to same wallet.

  1. The open ledger combined with KYC on exchanges means that it is trivial for the US government to know the owner of any particular bitcoin wallet. This gives the US government surveillance capabilities over your money that they didn’t have (to the same extent anyway) with fiat.

  2. Every bitcoin is a non-fungible token with its own history, and the government and exchanges use that history to blacklist coins. This makes it really dangerous to do p2p transactions with Bitcoin, if you sell your motorcycle for Bitcoin you can end up getting your Coinbase account locked due to depositing blacklisted coins from a drug deal or kidnapping.

  3. There are two kinds of store of value – one is based on the greater fool theory, and the other one is based on the net present value of future transactional utility. Bitcoin has no transactional utility, the entire darknet is moving to Monero, and the regular markets will follow eventually because they have less urgent versions of the same needs.

  4. The scaling problems with bitcoin are always answered with “Lightning will solve it”. Lightning has never worked well, and there is no reason that Bitcoin needs to be the base coin for lightning in the first place. Even if Lightning ends up being great, there is nothing about Bitcoin to advantage it as the coin of choice with Lightning.

  5. The possibility of a 51% attack is well known with PoW coins, but due to Bitcoin’s difficulty adjustment algorithm an attack with less than 51% is possible. Stop publishing your blocks right after a difficulty adjustment, then dump a month of blocks after the next difficulty adjustment, repeat. I think it is possible to kill Bitcoin with 30%.

  6. Tumblers don’t work for privacy, and the combination with a tumbler and Bitcoin’s high fees is too expensive anyway

  7. Tail emissions are the only way to keep a coin alive in the long run, Bitcoins fixed number of coins is a marketing success but will end in tears when the entire burden of the PoW network fees falls on people sending transactions.

  8. PoW has to be carefully designed if you want to avoid huge energy costs, Bitcoins system is a model-T ford compared to RandomX. Proof of Stake also has a big advantage in energy costs.

submitted by /u/anonoquis
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