Monero (XMR) current price is $105.86 with a marketcap of $1.75 B. Its price is -0.68% down in last 24 hours.
- Monero (XMR)
- Live Price $105.86
24h % -0.68%
- Market Cap$1.75 B
- Volume$1.21 B
- Available Supply16.56 M XMR
More Info About Coin
The allure for many cryptocurrency investors is in the blockchain technology and decentralization of the networks. For others, it is the transparency factor, where a degree of personal security exists as the result of everyone being able to see where every token is. If a hack is attempted it is easy to report it in real time because everyone can see which coins are going where and to whom. Many people in the cryptosphere love this idea.
Enter Monero (XMR). They, along with a number of other cryptocurrencies, saw that while all this transparency appears to be a good thing it has some obvious flaws. The most obvious flaw is: what if you don’t want everybody to know your holdings? It is the ubiquitous transparency versus privacy clash that exists in governments and corporations.
Who would want to hide part or all of their cryptocurrency holdings? We can start with those who have significant cryptocurrency holdings since whether you have common currency or cryptocurrency having a lot of either makes you a target for the less ethical among us. Another group, that we will briefly discuss later, is the criminal element, whose purposes do not require an explanation.
So Monero created a cryptocurrency that keeps the best qualities of the blockchain and decentralized server, then added a layer of optional privacy that would allow holders to keep prying eyes out of their transactions and holdings. It needs to be noted here that Monero is strictly for financial transactions.
The Technical Stuff
The method Monero uses to achieve this layer of privacy is called the ring signature. This is actually a mathematical formula that generates a key, then that key is shared among a defined group who are involved in the processing of a transaction.
This allows only the people who have the key to know what is going on with the cryptocurrency. As an added layer of privacy, Monero uses what they call stealth addresses, that are randomly created wallets for the purpose of masking the holdings of a user’s wallet. For those outside the ring signature, it is very difficult to determine whether a wallet belongs to any specific user, or if it has any holdings in it at all.
Monero also has built into it an option that allows key holders to create a view mode in which certain data about the transaction can be made visible to others. This places a certain degree of voluntary responsibility on the transactors to be forthcoming with the basic information of the transaction and avoid any accusations of suspicious activity using Monero.
This feature can be used to make transactions transparent during the course of an audit or for tax purposes.
The Potential Dark Side
Earlier it was mentioned that all this well-intentioned privacy could be used for criminal intent as the ring signature prevents everyone but those involved in the transaction to really know what is going on and who the players are.
Monero has in effect created an untraceable cryptocurrency and it is no secret. There is widespread use of Monero on dark websites where it is used to conduct transactions from everything to pornography to weapons. Officially, the Monero development team clearly states that it is opposed to such uses of its XMR coin.
But the technology itself raises a number of questions for the future of cryptocurrencies in general. There are a number of miners and investors who believe this is exactly what the cryptosphere needs to gain traction in the larger financial world to be accepted the same as common currency. One argument is that the untraceable Monero coin is no different than the counterfeiting operations that go on every day with common currency.
The Monero development team admits its privacy methodology can be improved, and is working to resolve some legitimate complaints from critics. Interestingly, those complaints are about loopholes existing in the privacy of ring signature transactions. With what has been said thus far, the idea that Monero needs to become even more private seems ironic.
So how does a potential investor approach Monero? It is (at least) a two headed monster, with one head having tremendous upside potential while the other head can bring out the darkest fears of cryptocurrency users and create an entire underground transaction market with no hope of ever being discovered. Yet developers are working to ensure privacy becomes even more secure.
The answer to the question of where Monero is heading lies in finding that very narrow line that keeps the best privacy features of XMR but finds a way for transactions to be minimally transparent. A potential solution to this dilemma may be to have some type of regulating entity, but that flies in the face of everything the blockchain and the democracy of the cryptosphere stands for.
If you believe in trusting people, then Monero may be right for you. Otherwise, you probably need to stay a safe distance until these key privacy issues find a workable middle ground.
Pros & Cons
|Totally anonymous, transactions can't be traced.||About 43% of the cryptocurrency belongs to just three mining pools and that can be a centralization issue in spite of ASIC being in place|
|There is no block limit in the block chain and it is not dynamically scalable||There is not much hardware compatibility of Monero wallets|
|Selectively, transactions can be made transparent if a person wants to make it|
BCrypto Investment Tip
If you've been in the crypto space for a while you probably heard of Monero, it's certainly one of the best coins out there to invest in short and long term. Its privacy and fully anonymous transactions makes it a very interesting coin with a huge potential as more and more people will start to use it in order to hide their money or their transactions. I'm sure many people will go against this coin because it's a perfect coin for criminals to use to funnel their illegal money but you know what, fiat currencies are already being used by criminals to run their businesses on a much bigger scale than cryptocurrencies are and you don't see people complaining about this but they are complaining about cryptocurrencies eventhough they have no clue what they are talking about. Monero is a coin that can easily be worth thousands of dollars in the future.