While not yet considered legal tenders by most nations, crypto users have found many alternative ways to transact using this asset class digitally. This has led to the meteoric rise in the market value of many cryptocurrencies.
Of course, Bitcoin is the undisputed champion in way of market value. It’s multiplied in value over 100-fold in the past few years.
But the thing is, investors are wondering whether the "big gains" have already happened. They’re looking for "the next one". So what is it?
One possible answer is Monero (XMR).
Monero (XMR) is an open-source cryptocurrency, which has an opaque blockchain, making the identity of the sender/receiver fully anonymous and can be mined using CPUs as well.
The price of Monero has zoomed 4,800% in just one year from $10 in 2017 to $494 in 2018. Currently, Monero trades at around ~$290, and here are a few reasons why that may prove to be a bargain...
Privacy has been the key concern and also a stand-out factor while dealing with cryptocurrencies.
Despite popular belief, Bitcoin transactions aren’t fully anonymous as they do not have a link with the user's personal information but with their wallets. Unlike Bitcoin, Monero utilizes a technology known as “ring signatures” to ensure the full anonymity of the sender and receiver of the crypto payment.
Monero also has this stealth address feature, which is similar to OTPs that are not linked with old addresses, thereby providing better anonymity than a Bitcoin.
The total mining universe of Bitcoin is only 21 million tokens due to limited supply, out of which 18.8 million have already been mined and circulating in the market using the SHA-256 algorithm, which is quite fast due to mining chips like ASICs (Application Specific Integrated Circuits).
On the other hand, there are 18 million Monero in circulation with no hard cap on supply which uses Cryptonight (GPU) mining. Bitcoin mining is quite expensive as it requires an ASIC computer, whereas Monero mining can easily be done using a simple CPU, making the entire process handy and cost-effective.
Block Size Limit:
Transactions during peak time might get delayed as Bitcoin has a maximum number of block sizes, leading to a busy network.
Monero works on the adaptive block-size limit, so if there are many transactions, the size of the blocks expands automatically. For Monero investors, this is one of the best benefits to have against Bitcoin.
The above graph represents the upward growth trajectory of Monero and Bitcoin from the last quarter of 2019 till the second quarter of 2021.
The price change in Monero has surpassed Bitcoin during this period, challenging Bitcoin indirectly. The current market cap of Monero is $4.9 billion and CMP around $270, which is relatively very small compared to Bitcoin’s market cap of around $1.16 trillion and CMP of $61,659.
If we were to compare, that gives ample room for Monero to grow and reach a lucrative market capitalization.