- What is Monero and how does it work?
- Advantages of Monero
- Past, present and future prices of Monero
Background of Monero Cryptocurrency
Launched in 2014, Monero is a privacy-orientated and open-source cryptocurrency. Its blockchain is not transparent, this makes every transaction untraceable and maintains the users’ anonymity. Its privacy makes Monero an attractive tool to use for illicit activities on the dark web.
Moneros token is represented by “XMR”. It has a current circulating supply of over 18 million tokens, with an unlimited supply and a current market capitalisation of more than $3.1 billion.
Investors are able to mine their own tokens
Investors are able to mine Monero using their own CPUs, which means paying for special hardware is not necessary.
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Moneros mining concept is based on the belief that every person using the platform is equal and therefore, deserves equal opportunities. When the blockchain was launched, the developers did not keep any stake for themselves, but they did bank on contributions and community support to further develop the virtual currency.
Monero is the leading cryptocurrency that is focused on privacy
Monero is currently the number one cryptocurrency that is focused on private and censorship-resistant transactions. Unlike major crypto platforms such as Bitcoin and Ethereum who have transparent and traceable blockchains, Moneros platform prioritises privacy by making use of privacy-enhancing technologies, this way Moneros users remain anonymous.
Moneros transactions are untraceable and confidential, the platform is currently the only one whose users anonymity is guaranteed from the start. In order to keep the sender, receiver and transaction amount, the platform makes use of 3 technologies:
- Stealth Addresses: automatic one-time addresses for every transaction.
- Ring signatures: a group of cryptographic signatures with at least one real participant, but there is no specific way to know which in the group is the real one as they all appear valid.
- Ring CT: a way of hiding the amount of money in the Monero transaction.
Because there is no transparency in Monero and its untraceability, it is a true fungible currency. Fungible in this context refers t o the property of a currency where two units can be substituted in place of one another. Those who accept Monero transactions do not need to be concerned over tainted or blacklisted coins.
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Monero is electronic cash that allows fast, inexpensive transactions without borders. With the Monero platform, there are no wire transfer or check clearing fees, no fraudulent chargebacks and no multi day holding periods.
Monero is decentralised, therefore there are no constraints by legal jurisdictions and provides safety from capital control.
Monero attracts the world's best cryptocurrency researchers and engineering talent
Monero attracts the world's best cryptocurrency researchers and engineering talent. Monero leads in the security within cryptocurrencies market, they have a research team who are consistently trying to improve on the technology for the platform.
Monero relies on proof-of-working mining, which is an algorithm that provides security to certain cryptocurrencies. proof-of-work also prevents errors in the system regarding double spending which can skew supply.
- Either buying the currency through an exchange
- Looking for a seller.
- Through an automated teller machine (ATM) that is enabled for cryptocurrency purchasing.
Is Monero Illegal?
Although some aspects of Monero sound as though they are illegal, Monero is infact a legal cryptocurrency. Due to its privacy aspect, the currency is popular on the dark web and is often used for trading on the black market, gambling and purchasing and selling of drugs.
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Advantages of Investing in Monero:
- Its development is focused on a high security, privacy and anonymity guarantee.
- Transactions are not link-able in any way to any Monero user.
- The blockchain does not have a block size limit and is dynamically scalable.
- Even when the Monero total is mined, 0.6 MXR per block will be created to incentivize miners.
- It has gained a lot of growth regarding its price.
- Selective transparency, any user transactions visible to the people they choose to share them with.
Past, Present and future prices:
Some investors believe that if investors are looking to enter the crypto market, Monero could be a good investment, its token price jumped 231% between August 2020 to August 2021. The growth of Monero during this time period impressed stock markets.
Recently, the greater financial markets, including the cryptomarkets have been experiencing volatility across the board.
There is hope amongst experts that Monero will continue to grow until the end of 2022, and strengthen even further into the future as well. Some experts predict that by 2030, Monero tokens could be worth over $3000
Monero (XMR) Price Chart
Sources: academy.bit2me.com, getmonero.org, finance.yahoo.com, investopedia.com