Three Reasons to Invest in Monero in 2019
While not as well-known and widely used as Bitcoin and Ethereum, Monero (XMR) comes as the 13th largest cryptocurrency in terms of market capitalisation, currently trading at around US$105. And it looks like it might be the next cryptocurrency to see an upwards trend in 2019. In addition to its value, Monero possesses several unique qualities worth investing in that are not found in Bitcoin.
The most prominent feature of Monero would have to be its privacy. Unlike Bitcoin, all transactions of Monero are private and anonymous. Firstly, it encrypts the sender’s information through the use of a ring signature, where the sender’s digital signature is combined with other, already used signatures on the Monero blockchain. These other signatures serve as a decoy to mask the identity of the real sender. It also obfuscates the receiver’s balance information through a one-time stealth address derived from the receiver’s public address. Finally, it keeps the amount traded hidden through a ring confidential transaction, or RingCT, which ultimately refrains from broadcasting the amount sent and instead broadcasts information that is just sufficient to prove the legitimacy of the amount sent.
While not entirely integrated yet, Monero is also in the process of developing Kovri, an anonymity technology that masks users’ IP addresses, further promoting Monero as the leading privacy-oriented cryptocurrency. Kovri is just one of the attractive features that is encouraging more investment in and use of Monero.
- Mining Monero
Another thing that differentiates this cryptocurrency is the ease at which free Monero mining is possible. Using the Cryptonight algorithm to mine XMR, as opposed to, for example, Bitcoin’s SHA-256, allows miners to use simpler computers and CPUs. Cryptonight’s algorithm for proof of work is ASIC resistant, meaning that the amount of XMR mined is not improved by using a more powerful computer. Essentially, anyone can mine XMR. As more and more people realise this, there is an increase in the mining and use of Monero.
- Price prediction
According to a number of forecasting sources, Monero is predicted to appreciate in value over 2019 and going into 2020. Longforecast, for example, expects Monero to be worth over $800 by the end of 2020. Trading Beasts does not boast such a significant predicted growth but still expects Monero to reach $200 in the next year. Other forecasting sources predict quite sizable increases in value, as well.
Image source: CoinGecko
One reason for these forecasts is the increasing scarcity of free Monero that remains unmined, encouraging more people to mine XMR before its entire initial supply of 18.4 million coins is in circulation. Since its inception in 2014, around 90% of the 18.4 million coins have been mined. Unlike Bitcoin, which has a fixed supply, though, a tail emission of Monero can continue to be mined past the 18.4 million limit but the inflation rate of the cryptocurrency will diminish. Do find out more on how to make Free Monero.
Another reason for the predicted increase in value is Monero’s increasing popularity, marked by the fact that Ledger Hardware Wallets, primarily their Nano S wallet, adopted Monero at the end of 2018 and is now compatible with the cryptocurrency.
As Monero has been growing and is predicted to continue appreciating, it is time to consider investing in this cryptocurrency that puts privacy at its forefront. One way to easily begin investing in Monero is through free Monero faucets.