Monero cryptocurrency is one of the most popular blockchain-based anonymous currencies. Cryptocurrency fans, for whom the main idea of the blockchain – anonymity, plays an important role – are actively following the development of Monero. We will tell you what experts predict the XMR rate for the future, as well as what affects the value of Monero.
What are Monero and XMR?
Monero is an open source decentralized cryptocurrency. The great popularity of Monero is due to the high level of privacy of transactions on the network. Monero uses ring signature technology to shuffle transactions across the network. Thanks to this, an outside observer is not able to track transfers and find out the balances of wallets. This feature is the main difference between Monero and Bitcoin, but you easily can find xmr to btc converter.
There is still no reliable information about who created Monero. The author of the white paper describing the principles of work bears the pseudonym Nicholas van Saberhagen – this supports the idea of anonymity. Translated from Esperanto, Monero means “coin”. The main developer used the Bytecoin and CryptoNote codebases to create the coin, with a focus on privacy and security. If you want to know more about what Monero is, read our in-depth guide. Polkadot is a blockchain project that’s designed to make polkadot wallet easier for developers to use and build interoperable blockchains.
What can affect the Monero price?
- Anonymity. The anonymity of some cryptocurrencies has repeatedly played a cruel joke with them. Since the Monero developers are positioning the currency as confidential, many exchanges may opt out of listing. Currently, the laws of some countries, for example Bolivia or China, are quite categorical regarding cryptocurrencies, especially anonymous ones.
Delisting on cryptocurrency exchanges can lead to the fact that it will be difficult to buy Monero, which means that the number of users may decrease, and, consequently, the rate will fall.
- Hard forks and updates. As we said earlier, at the end of 2019, the developers of the Monero cryptocurrency launched a large-scale hard fork. Its main feature is the activation of the RandomX algorithm, which replaced the CryptoNight R algorithm. Thanks to this, mining became possible on video cards and processors. According to the developers, these processes can increase the level of decentralization of the network, as well as remove the ability to mine on expensive FPGA and ASIC devices.
- Hacks and hacker attacks. Malicious attacks on the blockchain are not uncommon for most cryptocurrencies. But since Monero is a confidential currency, on the network of which it is not possible to track transactions, hackers often choose it.
According to experts from WalletInvestor, Monero is a good long-term investment. In 2021, XMR cryptocurrency is forecast to be priced at $ 148,287 in January and $ 166,864 in December.
In 2022, WalletInvestor experts expect a decline to $ 144,600 in January. The price will fluctuate throughout the year and will close at $ 176,422 in January.
You can find forecasts on such resources:
Currently, anonymous cryptocurrencies have difficulties with government regulation. Due to legal issues as well as existing shortcomings, it is too early to talk about the future of Monero, however, it is likely that many users will be able to appreciate privacy.