Mar 28, 2021

📝 Monero Background 📝

Blockchains like Bitcoin & Ethereum are public which means that anyone can see what you are spending your crypto on. They are not fungible. However, Monero is completely fungible. They are able to achieve this with some cutting edge tech. Through the use of what are called "Stealth Addresses", users are able to generate a unique Monero public address and receive inward transactions. Monero also has what are called 'Ring signatures'. This is a mechanism where a transaction is signed with a collection of other possible signers.

💳 Medium of Exchange 💳

Monero is much cheaper to send than both Bitcoin & Ethereum. This is thanks to an upgrade to the tech called "bullet proofs". These made the transactoins not only lighter but also much cheaper and faster. Perhaps this is why Monero is increasingly being accepted as a method of payments at a number of merchants. All of this adoption of Monero as a medium of exchange has meant that total transactions on the Monero network are near all time highs. It's value from a "utility" perspective is often not considered.

🤔 Exchange Risk? 🤔

Monero is privacy coin enemy number one when it comes to regulators & agencies. They are funding numerous blockchain auditing firms in order to develop technology to track it. Monero developers are not sleeping at the wheel either. They are working on an update to the Ring Signatures scheme that they currently use. It's called Triptych. Monero is also not a security as compared to a number of other coins. It has the lowest rating when it comes to being able to be a security. There are a number of exchanges that have been delisting Monero out of fears that regulators could eventually clamp down on their trading of it. However, with the potential release of Atomic swaps, Monero could bypass the need for exchanges entirely. Users could swap Monero & Bitcoin cross chain.

📈 Network Security 📈

Monero has always been fighting against ASIC chips and mining centralisation. These are the hardware that threaten the current state of the blockchain. Monero completely neutered this threat with their release of the RandomX mining algorithm. This is heavily reliant on CPU mining which means that it decreases mining centralisation. Since the implementation of RandomX, hash rate has been climbing while the number of miners on the network has also been doing so. This all points to Monero winning the battle against these ASIC miners.

🤔 Price Potential 🤔 XMR is still 54% off of its all time high. Take note that Bitcoin is over 3x its all time high & ETH is 30% over its all time high. This really does surprise me. Monero's tech has improved by leaps and bounds since 2017 and yet it appears to be more undervalued than most other coins. Monero is also way below its value based on what it would be according to the famed stock to flow model. This has been quite successful at predicting the Bitcoin price and it could therefore point to the fact that Monero is severely undervalued.


📜 Disclaimer 📜

The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading Forex, cryptocurrencies and CFDs poses considerable risk of loss. The speaker does not guarantee any particular outcome.