Monero Outperforms Bitcoin. What does it mean?
I have been pointing out on my social media and Livestreams that Monero has been outperforming Bitcoin since April 2024. This inversion in the 
XMRBTC cross pair is interesting in itself considering most cryptocurrencies remain in high correlation to Bitcoin BTCUSD but there is more that can be inferred by this relationship. First, we will look at the key data point in the past that could be happening and then I will offer a possible explanation for this phenomenon.
Bitcoin Maxis will point out that over the last 2 years Bitcoin overall has outperformed Monero by 25%. That's not the point. It is not that Monero is a "better" long term investment. Bitcoin has far more bullish history. The point is that the last time Monero outperformed Bitcoin was through the whole 2022 bear cycle. The outperformance did not end until January of 2023 when the Bitcoin bull trend started.
If history is a guide then Monero outperformance, especially sustained over many months, is an indicator itself that a bearish cycle of Bitcoin is confirmed. It also could be argued that Monero could become the "flight to safety" during bear cycles. We only have one sure data point but are currently witnessing a second.
How can Monero do this? The best possible explanation is the Dark Web. On-chain transaction on Bitcoin have become prohibitively expensive. The alternative of using Lightning network, by having to setup and join nodes, negates the privacy that the Dark Web runs on. Monero has over the last few years become more dominant to the point that now it is the only cryptocurrency used on many Dark Web sites. Monero is the clear winner in the privacy use case for cryptocurrency.
XMRBTC cross pair is interesting in itself considering most cryptocurrencies remain in high correlation to Bitcoin BTCUSD but there is more that can be inferred by this relationship. First, we will look at the key data point in the past that could be happening and then I will offer a possible explanation for this phenomenon.Bitcoin Maxis will point out that over the last 2 years Bitcoin overall has outperformed Monero by 25%. That's not the point. It is not that Monero is a "better" long term investment. Bitcoin has far more bullish history. The point is that the last time Monero outperformed Bitcoin was through the whole 2022 bear cycle. The outperformance did not end until January of 2023 when the Bitcoin bull trend started.
If history is a guide then Monero outperformance, especially sustained over many months, is an indicator itself that a bearish cycle of Bitcoin is confirmed. It also could be argued that Monero could become the "flight to safety" during bear cycles. We only have one sure data point but are currently witnessing a second.
How can Monero do this? The best possible explanation is the Dark Web. On-chain transaction on Bitcoin have become prohibitively expensive. The alternative of using Lightning network, by having to setup and join nodes, negates the privacy that the Dark Web runs on. Monero has over the last few years become more dominant to the point that now it is the only cryptocurrency used on many Dark Web sites. Monero is the clear winner in the privacy use case for cryptocurrency.
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Discord Trading Community: discord.gg/eDfhKvS5AC
Youtube: youtube.com/c/NoroksNotepad
Twitter: twitter.com/noroktrade
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