Monero: The P2P Cryptocurrency Bitcoin was meant to be?
The recent hype surrounding Bitcoin in recent months is truly astonishing. As of the time of this writing, Bitcoin is approaching 10,000 USD in value with a market capitalization exceeding 150 billion, with the numbers appearing to travel only in one direction: up. Everyone from blue collar workers looking for a quick side profit to hedge fund suits in Wall Street moving billions in capital on the daily seem to be descending on Bitcoin (and, to an extent, cryptocurrency) with ever increasing frequency. But with massive companies like Coinbase nearly monopolizing the fiat-to-crypto exchange and Bitcoin becoming ever increasingly commercialized, people are quick to overlook the original vision held by Satoshi Nakamoto in his whitepaper: A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution. A majority of Bitcoins are now being exchanged through increasingly large third party institutions such as Coinbase and Coinify which track where Bitcoins purchased through their service are spent. And while many will be quick to use the old “If you have nothing to hide, you have nothing to worry about” excuse,
members of the cryptocurrency community have come to know that that’s total BS. If two individuals want to make a trade for a good or a service, they have every right to do so in a way that does not go through a third party source.
Something that is getting increasingly harder to do with Bitcoin lately.
Something that Monero has every capacity to do. Not just as good as Bitcoin, but better.
I’m not saying in any way, shape, or form that Bitcoin is without its uses. What I am saying is that the current use case for Monero is uncannily similar to that of the original Bitcoin vision That Nakamoto had. Monero is a fully secure, peer to peer cryptocurrency that is not only usable without a third party distributor, but preferred. True, the desktop wallet does take a while to sync to the blockchain in some cases, but transactions done with Monero are safe and almost instant.
Even the supply is similar to BTC. As of the time of this writing, there are 16,704,150 BTC in circulating supply. Comparatively, there are 15,405,372 XMR in circulation. Because of this, the growth pattern for XMR can be compared to BTC. For example, when BTC’s market cap was at 1.5 billion, it was valued at 130USD each. When Monero’s market cap was at ~1.5 billion, it had an average price of 117USD. These are very close margins, so you can expect a growth pattern similar to Bitcoin’s as the market cap for XMR increases.
Which it has been doing in spades lately. In August 2017, it was valued at a mere 49USD. Now, it is more than triple that amount.
The cryptocurrency space is growing at an exponential rate now, and we are on the verge of an economic and technological revolution. Different projects will rise and fall, but crypto as a whole will move forward. Monero could crash and burn tomorrow, or could expand to unfathomable levels. This is not financial advice and you should take everything I say with a grain of salt. I’m just giving you the information.
Mark Weerasinghe4 Posts
Mark Weerasinghe is a journalism student at the University of Copenhagen who has been studying and investing into cryptocurrency for nearly two years. He has been a fanatical supporter of Ethereum and Monero throughout their existence, and believes that blockchain technology is not just a get-rich-quick opportunity, but the foundation for the future of global trade as a whole.