After the stunning success of Bitcoin, the cryptocurrency market literally overwhelmed with a wave of new coins. However, only a few of them managed to achieve the recognition of traders and get into the world TOP. Among them was Monero – an unusual cryptocurrency the success of which is explained by the heightened anonymity of transactions. Is Monero a fully anonymous cryptocurrency? What functionality did its creators put into the coin? How does the market value of monero change and, most importantly, does it make sense to invest in it right now? All this and much more is in our article.
What is Cryptocurrency Monero?
The coin appeared as a result of the fork of the Bytecoin network (not to be confused with Bitcoin). Baytkoin was a very popular cryptocurrency and gained fame almost the main means of payment for the darknet. However, when it became known that 80% of the coins had already been issued and even distributed among certain users, trust in cryptocurrency was shaken.
Therefore, 7 people from among the creators of Bytecoin separated and staged a fork, creating a new cryptocurrency based on the original program code bytecoin. The developers called their child “monero”, which means “coin” in Esperanto.
Perhaps that is why only two of the 7 developers showed their face – Ricardo Spagni and Francisco Cabanas. The rest are hiding under pseudonyms and do not advertise their activities. Although, perhaps, heightened anonymity is also associated with an ambiguous perception of cryptocurrency, which will be discussed later.
Anyway, the project started quite successfully – it was favorably received by users who have claims to Bytecoin. However, just a few months after the launch, the network was faced with a powerful hacker attack.
Only by the end of 2014, the developers managed to eliminate the vulnerabilities identified during the attack, launch their own crypto-purse and bring Monero to cryptocurrency exchanges. An anonymous coin immediately attracted the attention of experienced traders who used to look at baytkoin.
How does Monero differ from other cryptocurrencies?
This is the technology of so-called ring signatures, which was actually invented long before the creation of monero. However, the developers did not mindlessly copy someone else’s technology, but improved it and adjusted it to their goals. More precisely, under one main goal – to create a network with the maximum anonymity of transactions.
How does it work? If to talk simply, a group of users is randomly formed in the system, each participant of which receives their own access keys for making payments (secret and public). When conducting a transaction, the participant presents his public key (he acts as a digital signature of the group) and uses a secret key that only he knows about. None of the entire network knows his private key and can not determine who exactly made the transaction.
For greater anonymity of transactions the system constantly shuffles transactions and hides users’ balance sheets through randomly generated addresses. Conventionally, when you make a transfer, the system generates a one-time address at which the transaction passes. At the same time, no one sees your real web address and does not know how much and to whom you transferred. The next time, the system will generate a new address, and again, it will not be possible to track your transfers.
Coins are constantly mixed in the system and no one can track or adjust this process – it is built absolutely randomly. You will not achieve this level of anonymity on the Bitcoin network, even if you contact third-party mixers.
The developers added Ring CT technology in 2017, which completely hides the amounts being sent. If in Bitcoin the standard transaction looks like “Vasya transferred Pete 1 BTC”, then in Monero – “User X transferred the number of XMR to user YN”. It is also planned to introduce the Kovri algorithm in the near future, which also hides the IP addresses of users.
However, this is not all the features of Monroe. If you compare the coin with Bitcoin and other cryptocurrencies, other significant differences are striking.
How to mine Monero and is it worth it?
Experts assure that it is worth. So far, it is possible to mine monero only on a processor or video cards, but not on asiki. Special equipment for mining monero still does not exist. This means that almost anyone can get coins – no need to buy expensive asiki or whole farms for mining.
You need to download a miner program (Wolf’s CPU miner, Yam CPU or Claymore CPU Miner will be suitable for mining, Claymore CryptoNote GPU Miner or CUDA miner on video cards), set the mining settings and run the process on your PC to start mining coins.
If the capacity of the equipment is not enough, you can join the mining pool and get coins together with other users. Those who choose this path should take a closer look at the pools of Monero.crypro pool.fr, MoneroPool.com and Monerohash.com.
However, before mining coins, calculate the potential profitability of mining and compare the cost of electricity with the income from the production of monero. Such calculations can be done using a special online calculator – for example, red miner.com/monero.
On cryptocurrency exchanges and sites like LiveCoin, monero can be purchased for bitcoins, dollars or euros. Exchangers also provide an opportunity to exchange even hryvnas or rubles for XMR.
Soon, hardware wallets for monero storage should appear. The company Ledger has already announced work on new wallets Blue and Nano S with XMR support.
How did Monero cost change and why?
The coin cost only a few dollars in 2014 and was of interest only to traders who worked with Bytecoin, but became disillusioned with a monopolized network.
Soon the game portals and mining equipment stores became interested in the cryptocurrency, but the cost of monero did not rise above $ 4. The sharp jump in the rate occurred only in 2016, when the owners of the shadow market AlphaBay paid attention to Monero. Just a few days the price of cryptocurrency has risen to $ 15.
The Monroe took on the South Korean Stock Exchange Bithumb in the summer of 2017 and the price of a coin unexpectedly for everyone passed for $ 100. XMRs began to be used in popular online casinos in the fall, on the shadow platform Oasis and the anonymous mail service SIGAINTNORT.
Due to the high popularity among the users of the darknet, the price of monero is constantly growing. At the time of writing, it has reached a record 270 dollars today.
Is it worth investing in Monero?
Despite constant discussions around cryptocurrency (especially about its close ties with the darknet), experts agree that monero is a good option for long-term investments.
The coin is firmly entrenched in the world top cryptocurrency, its price, albeit with differences, but growing and the market capitalization reached $ 4 billion (a couple of years ago this figure was only 50 million). Consequently, the coin has a high investment attractiveness and stably receives an inflow of new capital.
Of course, Monero is not without flaws. Mining coins eat up a lot of RAM and power, and the transactions themselves take up a lot of space, so there is no need to talk about instant payments at all. However, due to the high anonymity and decentralization of the network, the army of Monero fans is constantly growing.
More recently, the course of monero grew very slowly. The coin could not quickly unwind due to ambiguous perception among traders and investors. Some considered it the standard of anonymity, others – the secret currency for drug trafficking and other illegal actions.
Interestingly, the controversy surrounding Monero suddenly quieted down when WikiLeaks officially announced support for the project. Of course, it is difficult to call this organization a measure of public approval. However, all investors knew that WikiLeaks had previously invested only in Bitcoin, Lightcoin, and ZET cash-cryptocurrency, which actually fired. If Assange and the company are invested in Monroe, there is every reason to believe that the coin will have an equally bright future.
And given that for many users, anonymity of transactions is one of the priority characteristics of cryptocurrency, the popularity of Monero in the near future may well continue to grow. So, it makes sense to buy coins until their price has reached a peak.
They can be sold in a few years, when the situation is leveling off, the hype will subside and new cryptocurrencies will begin to emerge, surpassing the monero in technical terms and values for users, including in terms of anonymity.