Another advantage of monero over bitcoin is fungibility, which means that two units of a currency can be mutually substituted and there is no difference between the two. While two $1 bills are equal in value, they are not fungible, as each carries a unique serial number. In contrast, two pieces of 1 oz. of gold of the same grade are fungible, as both have the same value, and don’t carry any distinguishing features. Using this analogy, a bitcoin is the $1 bill, while a monero is the gold piece.
The transaction history of each bitcoin is recorded on the blockchain. It allows identifying bitcoin units that may have been linked to certain events, like fraud, gambling, or theft, which paves the way for blocking, suspending, or closing accounts that are holding such units. Imagine receiving a few bitcoins today that were previously used for gambling, and they are banned in the future, leading to a loss.
Monero, with its non-traceable transaction history, offers participants a much safer network where they don’t run the risk of having their held units be refused or blacklisted by others.