Monero (XMR) – Is It Worth? An In-Depth Guide
What is Monero?
Monero is a private and untraceable digital currency. The primary focus of development is Privacy, so the Monero network was built from scratch with this use-case in mind. The coin is based on the CryptoNote protocol, and its native asset has the ticker XMR.
Monero is the most fungible digital currency because the heritage of specific coins cannot be retraced. This ensures that exchanges or wallet-providers can not blacklist certain XMR due to their transaction history. Sending and receiving addresses are obfuscated, and transactions on the Monero blockchain cannot be linked to any specific user.
Privacy and untraceability are achieved through this features:
- Ring Signatures: mixes the transaction output with a group of others, so it cannot be found out who signed the actual transaction
- Hides where a transaction is coming from
- Stealth Addresses: a cryptographic technique that disguises the recipients address through the use of random one-time addresses
- Hides where a transaction is going
In October 2013 the CryptoNote protocol, which Monero is based upon, was published under a pseudonym by the name Nicolas van Saberhagen. Bytecoin was the first cryptocurrency that implemented it. Monero started as a fork from Bytecoin’s code. It was called BitMonero and launched at 18.
April 2014. The team decided to do a hard split from BitMonero and start fresh with a new development team. Five days later Monero, which means “Coin” in Esperanto, was officially born. Riccardo Spagni, also known as “Fluffypony,” joined the Monero team in May 2014 and became the public figure that is most associated with the Monero project. 2016 Monero was adopted by one of the biggest Darknet markets at this time, AlphaBay.
Can Monero be mined?
Yes, it is Proof-of-Work. The PoW-algorithm is CryptoNight. When the total number of 18.3 million XMR is reached, the money supply will stop decreasing and stay at a constant rate of 0.3 XMR per minute. This practice is called “tail emission” and is implemented to make sure to incentivize miners to keep securing the network once the initial supply is fully distributed.
What differs Monero from other Cryptocurrencies?
The extreme focus on Privacy differs Monero from other Cryptocurrencies. XMR is truly anonymous whereas BTC, in contrast, is only pseudonymous. Monero has a very active and respected development community and has proven to withstand the test of time.
It is the most fungible digital asset today, and it differs from most other privacy-focused coins by the fact that it has privacy per default, not only as an additional feature.
How much is Monero worth today?
What is the total and the circulating supply?
The maximum supply of XMR is infinite in theory, due to tail emission. The circulating supply at the time of writing is 15 977 767 XMR.
Where can you buy XMR?
You can buy XMR on several cryptocurrency exchanges, most notably Binance, Bithump, HitBTC, and Bittrex. Also, there is the option to purchase XMR person-to-person through Localmonero.
Can XMR be sold for cash?
You can sell XMR for cash on several cryptocurrency exchanges that have fiat-pairings, most notably Bithump, Bitfinex, and Kraken. Also, there is the option to sell XMR person-to-person through Localmonero.
The Monero community and the company ledger are both working on the integration of XMR into hardware wallets, which is a crucial step for adoption.
Overall, the development of Monero is very active. The team is continually working on improving Scalability, and they are developing second-layer solutions for improved speed. Another project that is designed by the Monero community is “Kovri,” which is a decentralized anonymity technology for routing.
Verdict and Rating
7/10Monero is one of the most fascinating projects in the cryptocurrency space. It is actively developed and, more importantly, actively used for its intended purpose. It has proven over time that it is the most fungible digital currency and the top choice for genuinely private transactions. Monero certainly has a bright future ahead.
The downside is, it has to be seen as critical from an investors perspective. When the financial authorities regulate the cryptocurrency scene, regulatory bodies might force exchanges to delist Monero due to its untraceability. And this would mean a drastic fall in price due to dwindling liquidity and availability. XMR will continue to exist, but probably at a much lower price. Monero is one of the best projects from a technological view, but I foresee a not so happy future for XMR as an investment vehicle.
DisclaimerThe writer’s views are expressed as a personal opinion and are for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.
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