What is Monero and is It Better?
The world of cryptocurrencies is quite saturated and you will often see yourself pleased with knowing that the possibilities to buy a new asset are there. However, with those opportunities come many unknowns that will need an answer at some point. From Dogecoin to Ripple, we all need to know what a certain cryptocurrency represents before we can carry out any meaningful investment in the sector.
Recent years saw many cryptocurrencies come to bear. With the sector so saturated, it is perhaps time to start explaining how different assets are faring across the board. The main appeal of crypto riches has been their anonymity and lack of taxation. However, this may be about to change.
Very few of these cryptocurrencies and their owners have come forth publically to pay taxes, for instance. Everyone has been quite happy to cherish their privacy and to claim untaxable gold from the subtle actives of cryptocurrencies.
What is Monero and Can It Avoid Taxation?
Monero has made headlines in recent months. Monero is a new privacy-oriented cryptocurrency tantalizes investors into action, drawing mostly from the fact that it is a novelty item on the vast market for cryptocurrencies.
More specifically, the cryptocurrency was launched in 2014 and it bears the XMR denomination. Serving as an open-source cryptocurrency, it is based on the blockchain technology.
Monero was initially rather more inscrutable, but gradually it evolved into a more open exchange medium, as its founder realized the potential of a transparent cryptocurrency in a world where everyone is trying to avoid too much scrutiny.
Monero’s mining is also rather different. It is based on what experts call an egalitarian concept. All people who participate in the mining process are entitled to equal share of what we will call a spoil for a want of a better word.
This differs from Bitcoin, which has enabled holders of vast wealth of bitcoin to manipulate the market and dump the price so they may snatch up the tokens rather than spend money in futile to obtain additional hardware power.
Monero is distinct for another reason as well. When it was launched, Monero’s developers did not stint any effort. They decided that no stakes should be kept for themselves, and they put all available coins in circulation.
More good news followed as the community started contributing, and developers decided to use the means to further their new brainchild.
How Does Monero’s Mining Process Work?
Monero relies on a mining process that is not stressful in terms of computing power. In it, people may join mining pools or they can opt to go it alone. Moreover, Monero’s mining is quite simple and easy to utilise, as it does not need any sort of specific hardware or obscene amount of energy to function. Monero is also supported by a number of platforms, including Windows and iOS as well as Android.
In other words is an easy to obtain currency, which will perhaps never amount to much individually, but put together, Monero coins can become a meaningful exchange token. However, you should still consider that because of the low entry level of the token, people with more computing power, can turn themselves rich overnight, which is a process that will need addressing.
Is Monero Really All That Private?
Monero does not revolutionize the entire process of security where cryptocurrencies are concerned, but it draws on popular concepts and bolsters them well enough. Monero uses ring signatures and stealth addresses.
With ring signatures, participants may stay anonymous so that their privacy is untainted. While you will still need to leave a digital footprint for a transaction to take place, nobody would be able to trace which member signed off on the transaction.
In order to come up with a unique ring signature, Monero taps into a person’s private account key and then pools those with everyone else’s keys so that a transaction can be carried out and turn up as genuine.
Understandably, with the controversy around Bitcoin now afloat, it is likely to see all cryptocurrencies coming under further regulatory scrutiny. Quite honestly, linking users’ crypto wealth to bank accounts that are kept private is another feasible way to regulate the sector, but this in turn means that users will have to willingly surrender their identities to banking authorities and by extension – the government.
Even in the current uncertain context, Monero is likely to go further in terms of success than its counterparts. Today, it is the 13th largest cryptocurrency and it quite openly advocates for more regulation in the sector or at least insofar as frauds can be uprooted. By all estimates, this is the right approach to establish yourself in the sector.