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Monero (XMR): Should I Invest in Monero?

Decentralization is one of the chief pillars of cryptocurrency. Some cryptos fall under the control of large entities. It makes them less private and more centralized. Without privacy, the security of crypto transactions cannot be guaranteed.

Many crypto investors want to invest their money in a coin that has the highest level of security. In this article, you’ll learn about Monero, its potential, and whether you should hold or trade XMR to NANO or any other coin.

What Is Monero? 

Monero is a decentralized cryptocurrency created by seven individuals — five of whom don’t disclose their identities. It was launched in 2014. Monero’s primary goal is to provide privacy and security for its users. 

Monero blockchain uses stealth addresses. They allow users to create unique one-time public addresses that cannot be linked to the participants of the transaction. Other technologies that Monero implements for securing transaction anonymity are Ring Confidential Transactions (RingCT) and ring signatures. 

A ring signature is a mechanism that obfuscates users’ IPs. It combines the digital signature of a sender with the signatures of other traders. The RingCT hides the value of a transaction solidifying XMR’s privacy coin status.

XMR is a native token of the Monero blockchain. The platform works on a proof-of-work (PoW) consensus mechanism, which means it is possible to mine XMR. Anyone with a simple CPU (a computer or phone) can mine XMR. 

Monero guarantees its miners a fixed block reward of 0.6 XMR, and its minimal level is secured at 0.3 XMR. This together with a block time of 2 minutes makes Monero one of the better alternatives to Bitcoin for miners worldwide. 

Here are some of the other characteristics of the XMR token:

  • throughput of up to 1,000 TPS;
  • high security enabled by RingCT and ring signature technology;
  • no supply limit;
  • current supply of over 18M XMR;
  • market cap of around $2B.

XMR Price History

Crypto enthusiasts often compare the price of XMR to BCH price. And it’s no surprise. Rumor has it that one of the developers of XMR was Satoshi Nakamoto, creator of BTC. 

Since its launch in 2014, XMR has experienced significant gain. At first, Monero’s price stood at $2.1. It couldn’t break the barrier of $3 for more than two years. 

In 2016, the XMR price had its first soar and hit $13.9. By 2017, Monero skyrocketed and reached its pick price of $469.2.

Then, XMR hit a downturn and didn’t recover until late 2020. In May 2021, Monero hit an all-time high price of $517.62. Then the price dropped to $200 in less than two weeks. 

As of today, XMR stands at around $120 per token. Yet again, the coin is in the bear market. If you add XMR tokens to your portfolio now, it’s possible to gain significant profits in the future. 

Future Outlook for Monero

One of the concerns of Monero investors is XMR’s delisting from cryptocurrency exchange platforms like Kraken, EXMO, and Bittrex. Security tokens like Monero are becoming increasingly suppressed because of fraudulent activities that are associated with them. Despite the decrease in liquidity and price drop, Monero stands firm on its privacy principles.

The ability to conduct anonymous transactions is not the only thing that Monero can leverage to drive its price higher. Set block rewards, mining accessibility, and absence of supply limit are the reasons most miners turn to Monero and increase its price. For instance, Bitcoin has a supply limit of 21 million tokens, which it’s going to hit someday. When it happens, Bitcoin blockchain users will rely only on its fees.

The previous XMR price tendencies proved the coin’s growth. Reputable cryptocurrency prediction websites like Walletinvestor predict that Monero’s price will rise to $200 by the end of 2022. 

Experts from Priceprediction don’t see XMR breaking the $200 in 2022. However, they believe that the coin will reach its new all-time high of $599.5 by 2025.

Another source in the face of DigitalCoinPrice is not that optimistic and predicts that Monero will be traded for an average price of $270 by 2025.

Is Monero a Good Investment?

Investing in Monero might bring rewards long-term, but there are no guarantees. XMR price showed resilience and proved that it’s capable of surpassing everyone’s expectations. 

If you need a security token that provides complete anonymity of your transactions, then Monero is your go-to choice. Miners can also benefit from its stable 0.6 XMR block reward.