Yesterday I came across a tweet that got me thinking.
Someone was saying that Monero's principles were practically communist. I found it funny at first because I'm Cuban and come from a communist country, but after doing a little research on how Monero mining works... I couldn't help but see that he was somewhat right.
Up until that moment, I didn't even know how Monero mining actually worked. I'd always heard it was the "privacy coin," and didn't give it much thought. But when I saw that tweet, I decided to do what one should do: investigate.
DISCLAIMER:
Please correct me on my understanding of Monero if I'm wrong, but this was my conclusion, perhaps specialists know more about the subject than I do.
What I discovered surprised me. Monero has an infinite supply. Yes, infinite. After the initial emission period, it enters a phase called "tail emission," where 0.6 XMR are created per block forever. The argument? That this incentivizes miners to continue securing the network.
But not only that. Monero strives to make mining as "fair" as possible. It uses an algorithm called RandomX, which supposedly levels the competition between CPUs, so anyone can mine from their laptop without needing specialized equipment. Sounds good... in theory.
The intention seems good: to "democratize mining," to distribute rewards more equitably among participants. But in practice, this means everyone receives the same, regardless of their efficiency, investment, or risk.
Sound familiar?
It's the same logic applied by collectivist systems: rewarding everyone equally, without recognizing merit, effort, or innovation. And just like those systems, what this achieves is to discourage excellence and dilute value.
And all of this... for what? Privacy?
Yes, Monero is strong on privacy by design, without a doubt. But in the end, real privacy depends on not being able to link your identity to a transaction. And Bitcoin, although it leaves traces on the chain, is still very powerful if you take basic measures. If it's not linked to you, it's still effectively anonymous.
Also, I prefer a network that incentivizes competition, rewards efficiency, has a clear and predictable emission limit, and doesn't base its economic model on doling out crumbs forever. I prefer a network where there's real scarcity, not inflation disguised as "inclusion."
I understand why Monero appeals to some: strong anonymity, egalitarian ideology, ASIC resistance. But after looking under the hood, I have to say: I'm not convinced.