Cryptocurrencies are becoming more and more popular.
These are virtual or digital currencies that can be for trading or spending using blockchain technology.
Many of them aim to increase privacy and anonymity, and whether they will succeed is unknown. In some of these currencies, all transactions can be on publications, but in other currencies, data protection is optional. And others strictly mean data protection.
When most people think of cryptocurrencies, Bitcoin is the first thing that comes to mind. It was one of the first examples of using peer-to-peer technology to allow users to pay with their own coins. However, there is another currency that has achieved a high level of popularity and acceptance, mainly due to its privacy-focused features. This is called “Monero.”
Monero is an open-source, privacy-focused cryptocurrency launched in 2014. The blockchain is opaque, making the transaction details and the amount of each transaction anonymous and masking the addresses used by participants. Investors can mine Monero using their own processors. This means you don’t have to pay for any special hardware. Privacy features make Monero easy to use for illegal activities and the dark web.
It builds and operates according to the concept. Forming the underlying technology of digital currencies, these blockchains are public ledgers of participants’ actions that mark all transactions on the network. The Monero blockchain intentionally sets up to be opaque. By masking the addresses of participants, transaction details such as the identity of the sender and recipient, and the amount of each transaction process anonymously.
In addition to anonymity, the Monero mining process is based on an egalitarian concept. It is the principle that everyone is equal and deserves equal opportunity. Developers didn’t bet on their own when launching Monero but instead, bet on contributions and community support to advance the virtual currency further. Monero has reached $295.05 as of August 26, 2021, and has a market capacity of $5.3 billion. This is in stark contrast to the August 26, 2020, closing price of $89.12. Its market capitalization at the time was $1.58 billion.
The advantages of Monero
Another compelling reason to hold onto Monero is that it has an advantage over Bitcoin in terms of fungibility. This means that the two currency units can exchange without any difference. Two $1 bills have the same value but are not interchangeable as each has a unique serial number. In contrast, two 1 oz. gold bars of the same grade are interchangeable. This is because both have the same value and have no distinguishing characteristics. Using this analogy, Bitcoin is a dollar bill and Monero is a gold nugget.
All the transactions that have been made on each Bitcoin are saved and recorded on the blockchain, which allows us to identify the units of Bitcoin that are associated with illegal events such as theft, gambling, and fraud, thus preventing the suspension or closure of accounts containing such units. Imagine you gained a few bitcoins today that were previously gambled, but that will be banned in the future and you will lose money. Monero has an untraceable transaction history, giving its members a much more secure network, so there is no risk of others rejecting or blacklisting your units.
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