Oddbean

#Monero doesn't attempt to recreate scarcity. A second argument for Bitcoin is that it has a fixed supply, whereas Monero has a tail emission. This is extrapolated to mean Monero has an infinite supply, so it is as unfit to be a store of value as fiat. On the surface, this is definitely the more persuasive argument of the two, so we would like to address this one in detail. While Monero does have a tail emission, this is to ensure Monero’s long term security. Once the last Bitcoin has been minted, there will be no more block reward, leaving the fee market alone to incentivize miners to secure the chain. There is already preliminary research that suggests this will not be enough, and the security of the chain will drop dramatically, leaving the chain vulnerable to 51% attacks. Ultimately, this means you have accumulated a store of value that you can never move for fear of an attack. Going back to gold, would gold be at all useful as a store of value if it was impossible or prohibitively dangerous to move around, sell, or exchange? What good is inaccessible value? What good is an accumulated millions of dollars in stored value if it can only ever sit in what might as well be a bottomless pit forever? https://localmonero.co/knowledge/monero-better-store-of-value