The number one reason for anyone to transact with and invest in Monero cryptocurrency is its unique commitment to private and secure transactions and usage. In comparison, many transactions made using the largest and most popular cryptocurrencies can still be traced to keys, or in other cases, transactions are recorded and publicly viewable.
While some of these cryptos now offer add-ons for better privacy or have wallet options that perform these security for them, only Monero guarantees such anonymity baked into the coin itself, which leaves much less to consider when deciding on the best Monero wallet for managing all crypto transactions. A growing number of people around the world have already placed their investments on this coin, consequently increasing its value rapidly.
To understand why Monero is turning into a top cryptocurrency, here are some of the basics of XMR and what sets it apart from the rest.
Privacy from the Beginning
Originally called Bytecoin in 2012, the new cryptocurrency was created as an altcoin focused on privacy and anonymity. Unlike other altcoins, its code was not based on the most popular cryptocurrencies at the time, but instead, it was created from scratch, integrating special technology called CryptoNote to become nearly untraceable.
The coin faced some controversies and had several glitches, but the community behind the coin quickly removed any unscrupulous figures from the project. Within two years, Bytecoin underwent hard forks to fix all of its bugs while further improving its security, and by the end, its name was changed to Bitmonero and eventually shortened to Monero.
CryptoNote and Other Privacy Functions
The original bytecoin used what was called CryptoNote for its privacy. It worked by using ring signatures through which a random temporary public key or address was made in place of a sender’s real key when sending Monero to another user. A distinct transaction key would also be created to divert traceability away from the receiver, protecting both parties in the transaction.
This method of ring signatures was greatly improved after hard forks since its earlier iterations. Monero now utilizes its blockchains to pool several public keys who sign or verify a transaction to serve as possible senders or receivers, but through this process, there is no way for an intruding party to know which of the keys is actually involved in the transaction.
As with any technology, this protocol does not remain invincible forever, and there are eventually people who figure out how to work their way through these privacy measures. However, Monero’s code is open source, and as the community grows larger, more people can contribute to updates and improvements that make Monero’s privacy increasingly more difficult to bypass.
Monero’s Market Growth
Altcoins usually go off on rough beginnings when they first launch, but what differs is how steadily their value changes and sustains afterwards. In the case of Monero, its value was able to rise from $13 to $470 within less than a year when it was launched in 2017. Although it has not gone down to double-digit values since, nowadays it oscillates between $130 and $500, currently ranking in the top fifty cryptocurrencies.
Currently, there is no way around the volatility of the cryptocurrency market, so as with all other altcoins, the market behavior of each is purely up to speculation. However, the more practical way to discern cryptocurrencies is by what they each promise with regard to the future of finance. In this case, Monero is better taken as a long-term investment.
Monero and the Future
Technology in all fields has been rapidly developing, but this has come with equally pressing concerns about privacy and security in the wake of increasing hacker attacks and targeted advertisements. It is clear that not even people’s finances are safe from such intrusion either, which only serves to heighten the appeal of Monero’s privacy-oriented direction.
These claims are not merely self-proclamations either. Experts and leaders in software security such as John McAfee have expressed their support for the coin’s pursuits in financial security for its users. More than this, the value of Monero itself has been steadily rising as more people continue to support and to invest in it for its cryptocurrency privacy developments.
Perhaps investing in Monero is a no-brainer at this point, especially for those who want to keep their financial activity and personal data safe in the digital space. Furthermore, it might just be the right time to catch the altcoin before it skyrockets in value in the next few years. However, it is important to be responsible with handling investments, no matter what they are.
In the case of Monero, the investment must come from expendable money since it is never a good idea to risk one’s funds for basic needs by investing in such an unpredictable market. If the initial investment is no problem, it is just as important to secure a proper wallet, which provides just as many privacy features as the coin itself.