While a few cryptocurrencies might hold your attention as the most relevant, they are a whole lot more that are not so popular. These digital assets have distinguished themselves to handle the complexities of the crypto market. Monero (XMR) is one of the biggest of such cryptocurrencies.
Launched in 2014 as a Bytecoin fork, the crypto asset holds quite a good number of remarkable features. Spreading from an opaque blockchain, a relatively open-source protocol, and personalized mining framework. The most noteworthy feature of the Monero blockchain is its dedication to user privacy and the anonymous turnout of data and transaction details.
Understanding the use case of a cryptocurrency is a step to decide whether or not it’s suitable for investment. The privacy cryptocurrency is often compared with Bitcoin, however, both are quite different. The pros and cons of the virtual asset would be examined in this article.
Pros Of Monero
The cryptocurrency could be said to be a favorite for several dark reasons. Its most outstanding feature can be both advantageous or disadvantageous. It is a privacy-based blockchain and it offers obvious security.
To enhance the anonymous position of a user, the use of rings and stealth technology is employed. Ring signatures are generated from a combination of the user’s account keys and public keys on the blockchain to hide the identity of the sender and the transaction details. Stealth addresses are generated for one-time use to receive Monero, it is a way to ensure that the identity of the recipient is secured.
Cons of Monero
While the cryptocurrency is highlighted to be a secure and private blockchain, it is a good bet for evil intentions. The network is often used for illicit transactions on the dark web on sites like Alphabay or Oasis. Like an earlier scenario in 2019 where kidnappers of a wealthy Norwegian businessman requested Ransome being paid in Monero.
Generally, it is a good choice for Illegal transactions involving stolen items, money laundering, or cryptojacking. Out of its seven developers, five have chosen to remain anonymous. Governments like the British, are seeking ways to crack the blockchain’s code and get access to hidden data.
Is Monero a Good Investment?
In comparison to other altcoins, Monero is a good contender on the top 30 cryptocurrency list. Coin Market Cap rates it as number 26 in its performance rankings. With a value of over $270 per coin and a circulating supply of over over 17 million at the time this article was written, XMR can be said to be highly adopted. The cryptocurrency also seems to be affecting more of its usefulness to individuals and institutions that might wish to keep their business private.
The price of XMR has maintained an uptrend since the start of 2021. Massive rallies for the digital asset also proved helpful to its increasing value. It surpassed $160 by mid-January and hit over $277 by the end of February. In April it strode to $300 and hit its all-time high of $500 on the 9th of May. However, the market capitulation of the month sank it alongside other cryptocurrencies to nearly 40 percent down.
Monero (XMR) is a remarkable blockchain project. As an open-source protocol, it essentially focuses on the privacy of users and their transactions. The blockchain of the digital asset enables secure transactions. Indicators suggest that as the crypto consistently gets adopted by institutions and individuals to facilitate secure and private transactions, it would be up for another bull run.
Several predictions have pointed that the crypto would secure a $700 spot before the year ends. However, although the cryptocurrency appears to be a pain in the neck for financial regulators, it still fulfills an essential need for other honest persons.
Disclaimer: This article is not trading advice. TheDechained holds no liability for investments made on the basis of this information. We recommend independent research before making a decision to invest.