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 I think that Monero's flat graph is a good sign.
Even though it would have been better if the graph was XMR - Gold 
 Fath graph means it's losing value due to inflation just like USD, it's not good. Ideally you'd want it to at least preserve purchasing power over time, it's losing 
 Right. That is why I think it's better if it was flat against gold.

But thes second best is flat against USD. Even though it means that inflation is eating away at XMR, it means that it is acting as money and not as an investment asset.