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Monero
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This is the lemmy community of Monero (XMR), a secure, private, untraceable currency that is open-source and freely available to all.
Wallets
Android (Cake Wallet) / (Monero.com)
iOS (Cake Wallet) / (Monero.com)
Instance tags for discoverability:
Monero, XMR, crypto, cryptocurrency
founded 1 year ago
MODERATORS
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By simplifying how addresses are shared, speeding up wallet synchronization, and ensuring more reliable output detection, Jamtis represents a big leap forward in usability—without sacrificing Monero’s commitment to privacy and security.
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This publication is an invitation to look at pricing and exchange rate formation from a new and unusual perspective.
Monero's technological solutions are undoubtedly impressive - it's a great job. But we will never free ourselves from the modern monetary system, no matter how hard the community tries to technologically resist it by valuing Monero in fiat currencies. The conceptual solution that will break out of this vicious circle is to be found in the field of economic theory, namely in pricing.
The original concept which provide metrological unambiguity of economic theories is: The invariant of the price-list(measure of value).
The invariant of the price-list characterize by when products are exchanged on the two-way scheme “Product1→Money→Product2” there is a one selected product among the products of the money group, which is:
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A full participant in the natural product exchange with other usefulness moreover, that is constantly performing the function of an intermediary product in the two-way scheme “Product1→Money→Product2”.
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In its quantity publicly recognized prices are expressed by all other products into the all operations of products exchange on the market. (consequently, price of a unit of account by product-invariant expressed in the quantity of invariant – always will be 1. This property provide name of term - The invariant of the price-list. In other words invariant to invariant is always exchanged in proportion 1:1).
Whoever sets the invariant price list sets the rules of the game. For example:
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modern regulators have created slavish rules. After Richard Nixon's financial adventure in 1971 set invariant - 1$=1$, and all rights of issue are monopolised.
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if you assign your own invariant - the game is played by your rules, it’s relevant for local economies.
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When you use a universal invariant - you unite everyone around you because it has an effect on EVERYONE whether you are aware of it or not.
Finance is a sphere of existence that is constantly evolving along with humanity. It cannot be monopolized by a collective farm of bankers and moneylenders and their organizations. It cannot be monopolized at all.
In order to exist, cryptocommunities have to change their investment and financial behaviour by creating their own monetary system. There has been no good from the flirtation with the fiat money system. The regulators are wiping out free players in order to maintain their monopoly on money and the status quo.
To achieve true financial decentralization and freedom, pricing must be gradually, psychologically and conceptually decoupled from fiat currencies and freed from their jurisdictions. By pricing in terms of universal values that apply to every business unit. One of these values is the energy invariant of the price list and based on this concept The Energy Standard of Payment Instruments.
What is energy standard? Energy standard – is an alternative standard of monetary system, that takes into account the number of better spent energy for producing goods and services.
Why energy standard? Because this standard allows to create an economic relationship transparent, understandable for all, metrologically accurate and efficient.
Why should we alternative monetary system? Today’s world monetary system is not able to work for all mankind. This system is characterized by inflation, based on manipulation of the lending interest rate, feeling of fear from property loss and etc. The system sponsors and credits the degradation and parasitic needs of society. Today’s “financial world” grows and serves only separate exclusive part of society. This leads us to a not rational and critical use of our planet's resources to the point of endangering the existence of humanity.
What's wrong with the current monetary system? Before we answer that question, we need to answer one more...
What is the current monetary system? The global monetary system is an instrument for managing the global economy. This system is intended to control economic transactions and is a tool for the integration of many private businesses into a holistic macroeconomic with a full spectrum of productive sectors which are necessary for the owners of the current monetary system.
The quality of our lives depends not so much on how we work as on how we are managed.And the quality of their management is very poor!
The energetic basis of the price-list always exists during the whole history of our civilization and can be divided into two epochs:
— Before the 20th century – the epoch of manufacturing on the biogenic energy basis. The source of which is the plant photosynthesis. Thus the productivity of natural flora and cultural plant growing is at the heart of the prosperity.
— Since the beginning of the 20th century – the epoch of manufacturing mainly on the technogenic energy basis.
Modern professional economic science and people are sadly mistaken by choosing fiat currencies as the invariant of the price-list - 1$=1$. Because not one fiat currency does not belong to primary energy basis and is not а full-valid unit of the natural product exchange, only accompanies it. And psedo-abstraction as petrodollar serves a narrow syndicate of monopolists in the energy sector, and is deliberately promoted by science to avoid organic decentralization of economic calculations. All their greatness and power lies in the fact that they have imposed their invariant of price list on all mankind.
For the economic growth and prosperity of mankind, "galvanizing the corpse" of the gold standard will be fruitless. In Spain, during the colonial era and the flawless gold circulation from 1492 to 1600, the prices of goods in gold equivalent tripled. This happened because the volume of production remained virtually unchanged, while the amount of gold in circulation increased significantly.
Ultimately, these imports contributed to inflation in Spain in the last decades of the 16th century. Many people preferred to invest their money in public debt, which was invested in silver mining, rather than in the production of finished goods and the search for improved agricultural methodology and practices. Such long-term investment behavior led to stagnation and degradation of the methodology of managing the economic complex of the Spanish Empire, and as a result, to the loss of influence on the world stage.
Since the second half of the twentieth century the best price-list invariant for markets is a kilowatt per hour (kWh). Because:
— the most economic entities are consumers of electricity;
— the electricity tariffs are part of the energy price list;
In this case all financial and economic analysis and forecasts will have become metrologically sustainability and unambiguousness by expressing all estimated and real prices, cost prices and other financial indicators in kilowatts per hours for long time periods.
The currency turnover is financially expressed by statistical characteristics: total number of sales transactions by marketplaces and by regional electricity tariffs. Total value of transactions is the value of trade in nominal terms. This is the volume of turnover GDP in kWh as well as the volume of turnover of funds. In practice, it is an energy currency and there is a clear metrological link between the currency base and the range of products that it covers.
Exchange rate for the Monero currency - can be formed according to the coverage of cryptocurrency by economic entities. GDP is total number of sales transactions by marketplaces and by regional electricity tariffs.
One of the real-life cases – XmrBazaar. Every seller and buyer there are consumers of electricity. And eelectricity tariffs are part of the energy price list and are included in the cost of production.
The GDP statistic it's goods + services which Monero covers, can be expressed in kWh.
Then: CER = GDP/CB;
CER – currency energy rate; GDP - Gross domestic monero product; CB – nominal currency base;
For example: CDP (Suppose that all coverage Monero blockchain) = 30 000 000 000 kWt; Monero CB = 18 446 744 XMR;
Then: 1XMR = 30 000 000 000/18 446 744 = 1626 kWh
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Please help test calc.revuo-xmr.com and share with friends! Couple updates recently deployed
(calc.revuo-xmr.com)
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An overview of how it works first. On BTC, miners work to create blocks using a proof of work. The miners keep each other in check so that if some tiny miner decides to produce bad blocks, the rest of the network will just ignore the rogue miner.
The trouble is that when the majority of the network becomes rogue, and you can have a 51% attack.
What could a 51% attack look like?
Imagine that you sell your motorbike and receive some coins in exchange. You check the blockchain, coins received, and all is well. As soon as the buyer is gone with your bike, you check the blockchain again, and oops! Your coin is gone! 80% of the miners decided to collude, re-mine the latest blocks, remove the transaction where you received the coins, and replace that with a bribe from the motorbike thief. You are left there, bamboozled, with no bike and no coin...
This attack would be catastrophic for the network and erode the trust people place in it. It is fortunately hard to pull off because you need a majority of the hashrate for that.
You could buy 10 million USD or 20 million USD of equipment to mine, but that still wouldn't get you to 51% of the BTC hash rate.
Of course, if you had unlimited resources like a magician, you could print out mining rigs like there is no tomorrow and then overtake the network. But you are not that rich.
So, it's the economic cost of overtaking the network that protects it from the collusion of bad miners.
It would be so much cheaper and simpler for bad actors to attack if more and more miners just stopped mining!
Why do the miners keep mining anyway?
For the money! They buy cheap equipment, use cheap energy to produce blocks, and receive mining rewards. With the rewards, they pay back the equipment and the energy and then keep a profit.
As long as this business is profitable, the hashrate of the miners stays the same or increases.
What happens when the block reward is reduced? Nothing at first, but if it is reduced too much, the reward is no longer enough to cover the energy and equipment costs, and then the miners start shutting down some of their units. They are not in it for the tech; remember, they want to make money. They will shut down mining rigs unless the price of the coin has increased and the new price is enough to cover their costs.
On BTC, every 4 years, the block reward is divided by 2. If the price of BTC stays the same during that time, it means that mining brings half as much revenue every 4 years, so it's rapidly going to zero.
For example, if the miners are at break-even in a given year, 4 years later they will receive half as much money for their work, so they will have a 50% loss.
If somehow the price of BTC managed to double by that time, the miners would be back at break-even, but they might fear what will happen after 4 more years.
As the block reward keeps dropping and there are not nearly enough transaction fees to compensate, the BTC hashrate is going to drop more and more, and at some point the bad actors will be able to pull off their motorbike heist.
This was my understanding of the troubles of the BTC security model until very recently.
That is, until I read "Highjacking Bitcoin" by Roger Ver.
The book explains how bitcoin was captured by the bitcoin core developers and their company, Blockstream. It's an interesting read, and I highly suggest you give it a look.
Why does it matter? My understanding of the book is that now that Blockstream controls the code of the project, the main discussion spaces of its community, the BTC ticker, the 'Bitcoin' brand, and it is no longer challenged as to how to update the BTC protocol. They have effectively become the masters of BTC. They can steer it how they see fit. Roger gives the example of the Liquid Network as their proprietary alternative to the troubled bitcoin network.
This centralization of power could be very 'useful' if the miners have a problem (the mining rewards are too low) or if the miners ever become a problem. During the civil war, the miners had the power to choose the new King. At that time, everyone agreed that bitcoin was the chain with the most POW, starting from the genesis block of Satoshi. If Bitcoin Cash had been able to divert enough miners to it, it would have won the BTC ticker and the Bitcoin brand. Bitcoin Cash didn't win, and nowadays, the consensus is changing to "Bitcoin is what the Bitcoin core developers are working on". The subtle difference is that if there is a problem, the core developers could decide to update the protocol and sideline the miners that don't fit their vision.
What happens if the block reward and transaction fees are systemically too low for too long? Let's imagine a scenario where the number of miners decreases and the hashrate fluctuates violently. The core developers then decide to protect the network by updating the protocol rules so that only serious miners can continue mining. The result would be that only the ones aligned with the core developers will remain. This is drastically different from a few years ago, where the miners were still the kingmakers.
How does this change the security model of BTC? BTC now has a king, and its name is Blockstream. The king does not want to die, and it will take actions to avoid that. BlockStream will never let the miners close shop en masse if it endangers the whole network they control. The network will survive, with or without miners, because it's the foundation of the power of the king.
Granted, for me and you peasants and humble farmers, getting value out of it will probably involve a fair bit of grovelling, frantic begging and pleading for mercy to our new overlords,
but hey! The Number will Go Up!
PS: I would love to get opinions on the topic. What do you think of Roger's book?
PS: Justin Bons often has very interesting posts about the BTC security model and crypto projects: https://x.com/Justin_Bons
PS: Here are my socials: https://links.arseneoaa.me. If you find this post interesting, I think you will also like the Chronicles of Degendaland.
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