Monero, a cryptocurrency known for its privacy features, has gained popularity recently. Some investors suggest it could become the next Bitcoin, citing its default on-chain privacy as a key advantage. However, this comparison overlooks significant differences between the two assets.
Bitcoin's appeal lies in its fixed supply of 21 million coins and halving events that reduce new issuance over time, creating scarcity. In contrast, Monero uses a proof-of-work system but transitions to permanent tail emissions starting in 2022, resulting in a steady, ongoing increase in supply. This means Monero's value can be diluted over time, requiring constant new demand to absorb issuance, unlike Bitcoin.
Monero's privacy functionality, which allows for anonymous transactions, conflicts with regulatory demands for transparency in financial systems. Major exchanges, including Binance in 2024, have delisted Monero in various jurisdictions due to pressure from regulators. This makes the cryptocurrency difficult to purchase, hold, and sell for many investors.
The Motley Fool Stock Advisor analyst team recently identified 10 stocks they recommend for investment, excluding Monero. They highlighted past successes like Netflix and Nvidia, which generated substantial returns after being listed. Stock Advisor reports a total average return of 958%, outperforming the S&P 500's 196%.