What is Monero? – Advisor Forbes Australia

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At the time of writing in late October, Monero (XMR) was worth $143.35 according to data from CoinMarketCap. Monero’s market capitalization (market cap) currently stands at $2,651,700,339. Market capitalization is the current price of a cryptocurrency multiplied by its circulating supply.

Monero has been on a downward trend over the past year. However, all cryptocurrencies at all levels have been experiencing these lows lately. This is likely due to what is known as a “crypto winter,” which is an extended period of low prices. While it’s useful to consider performance trends when investing, a coin’s characteristics are arguably more important. Let’s break down some of the defining characteristics of Monero.

Privacy

Monero’s ability to offer wallet address and transaction privacy is made possible through a small collection of keys and ring signatures. This technology is known as cryptography.

Monero users are provided with three necessary keys: a public key, a private spend key, and a private view key. When you open a wallet with Monero, these will be created automatically, further securing your account. The private view key simply allows you to view your transactions, a public key is used to receive payments, and a private spend key is used to send payments. A large string of impossible-to-guess numbers makes up each key.

A ring signature is a cryptographic digital signature and key to Monero operations. It works by hiding the entry side of a transaction, which makes it almost impossible to determine who signed the transaction and thus protects the identity of the sender. At the same time, ring signatures can easily verify the authenticity of a signature.

How is it mined?

Crypto mining is the process of receiving new coins as payment for verification of blockchain network transactions. Crypto miners are typically tasked with solving a variety of complex cryptographic puzzles and recording investor transactions on the ledger. This incentive procedure keeps cryptonets secure.

Monero is considered by many to be one of the easiest coins to mine, as it does not require the miner to have specialized hardware. Therefore, anyone with the proper know-how can earn an income from mining XMR. Monero aims to keep mining equal in the future. So if you want to learn how to mine crypto, Monero can be a good place to start.

Link to ransomware

Unfortunately, the recent ransomware attack on Optus was not the first instance of hackers demanding Monero payments for criminal behavior. A 2021 CipherTrace report titled “Current Trends in Ransomware” revealed that at least 22 of the more than 50 ransomware groups would only accept Monero.

Privacy coins are known for their links to black market and ransomware activities. While this has little effect on the everyday investor, it is worth noting the levels of scrutiny privacy coins face. While regulatory action regarding Monero and other privacy coins is not yet significant, governments will likely attempt to use all their power to restrict criminal activity surrounding anonymous crypto.

How’s it going ?

As mentioned, Monero did not escape the crypto winter. In fact, the past year hasn’t been too successful for the price of XMR according to data from CoinMarketCap:

The chart above shows the price action in USD. This means that with the current value of around US$145.79, Australian investors can expect to pay around AU$227 for Monero. However, this bear market can be positive for new investors.

If you are looking to buy the market downside, it is imperative to ensure that you are properly educated before investing. Also keep in mind the volatility of crypto as an investment – ​​a coin’s positive track record is not indicative of its future performance.

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