Does Privacy-Coins like Monero (XMR) belong to the future? More and more people are searching for Monero on Google, and numerous analysts expect privacy coins to play an immense role in the next five to ten years.
But what do the Monero price forecasts say, where does the coin move in the medium and long term? We explain: what is Monero? Why is Monero special? What are the XMR 1-year forecasts, what is the Monero 5-year forecast?
What is Monero (XMR)?
Monero was developed from scratch in 2014 and does a lot differently than other cryptocurrencies. The goal of XMR: to enable transactions that take place privately and anonymously. Unlike the case with Bitcoin, for example: Due to the transparency of the blockchain, payments can usually be traced back to their original source without much difficulty. XMR, on the other hand, is based on the CryptoNote protocol (see below) and is designed to disguise both senders and recipients through the use of advanced crypto technology. Privacy and data protection are standard at XMR, because the coin disguises the origin of transactions and thus also the identities of its users.
In short: With Monero (XMR), all transactions are 100% anonymous, untraceable and unallocated.
According to the Monero developers, Monero puts privacy and security first. Only after this comes ease of use and efficiency. Monero aims to protect the privacy of all users. No matter what technical know-how you have.
Monero has its beginnings in ” Bytecoin“: This is the first real-life implementation of CryptoNote (see explanation below). From Bytecoin eventually developed the offshoot (“fork”) Bitmonero – and Bitmonero was one day then renamed Monero. Interesting detail in the margin: in the world language Esperanto Monero means “coin”.
What is CryptoNote?
CryptoNote is the Protocol that fuels various decentralized currencies. It is similar in some areas to the protocol running on Bitcoin, but it has more differences than similarities. So CryptoNote is not a Bitcoin fork, but is based on completely rewritten code.
CryptoNote uses so-called ring signatures to hide the identity of the sender. Also, CryptoNote provides non-linkable transactions. The” transaction mixing ” is made possible by the ring signatures.
Mixing means: The sender, when sending funds, selects several random funds of other users – and then they also appear in the transaction as a possible source of the sent funds. The ring signatures ensure that no one can say from which source the funds of the transaction actually come.
What distinguishes Monero (XMR)?
Various aspects set Monero apart from other cryptocurrencies. The most important is, of course, privacy or data protection.
This level of privacy is guaranteed by some special features. Example Bitcoin: Here, every single coin can be tracked and monitored. The movements of the coins can be traced via corresponding block explorers. With XMR, however, this is not possible. By default, all details are obscured – about the sender, the recipient and the amount of funds that will be transferred.
This maximum level of obfuscation is achieved (as already mentioned) by the use of ring signatures. To ensure that transactions are not linkable, Monero also creates stealth addresses for each individual transaction that are only used once. Monero is considered one of the most anonymous coins – and is therefore increasingly used for illegal transactions, for example on Darknet marketplaces. Various police agencies around the world have already tried to track Monero transactions-to no avail. Numerous governments have therefore offered enormous prize money for those who can “crack” Monero.
Monero’s core features summarized:
- Unlinkable – the identity remains private
The user retains complete control over his transactions. Only he is responsible for his money. Because the identity remains private, no one can see what the money is spent. If a user sends money to a public address, it is sent to a randomly created, brand new, unique destination address. This means that the publicly accessible data contains no indication that the money was sent to the public address of the recipient. The public address is never displayed in the public record of transactions. Rather, a “stealth address” is used in such a way that only the sender and the recipient can recognize the incoming funds.
- Fungibility – Interchangeability
Fungibility is the interchangeability between an asset and another asset of the same type (e.g. cryptocurrency for cryptocurrency – not: cryptocurrency for real estate). For example, Monero plans to offer atomic swaps with Bitcoin in the future. Background Atomic Swaps: With atomic swaps (also” atomic cross chain trading”), you can exchange cryptocurrencies on different blockchains directly from participant to participant without the need for a third party (such as a crypto exchange).
All of these aspects have placed Monero at # 26 in the crypto top 100 by market capitalization.
Who is behind Monero (XMR)?
Originally, seven developers were involved in the Monero development, rumor has it that even Satoshi Nakamoto – the legendary inventor of Bitcoin-is among them. Five of the Monero developers remain anonymous to this day. The most famous face behind XMR is probably the South African programmer Riccardo Spagni-better known on social media under his pseudonym Fluffypony. He stepped down from his role as Lead Maintainer at Monero in 2019, but is still said to be focused on the project. Overall, it is believed that hundreds of different developers have worked on XMR over the years.
Monero’s future prospects
Monero (XMR) is therefore completely anonymous – and this aspect could push the price of the coin. Indeed, as the U.S. Treasury recently announced, the Biden administration is planning new tax laws-including a requirement for companies to report cryptocurrency transfers of $ 10,000 or more to tax authorities starting in 2023.
Just getting to know this news has caused Monero (XMR) to rise by a whopping 32%. An outlook on what will happen when the planned changes become law in 2023? Currently, Monero is also around 46% below the previous all – time high of $517-so the coin still has plenty of room for improvement.
Monero’s anonymity prevents tax offices and other authorities from assigning transactions. Tools such as Etherscan or the Blockexplorer, with which users can track corresponding processes in detail, do not exist at Monero as mentioned. However, many also have an interest in changing this. The blockchain analysis company Ciphertrace, for example, already wants to be able to track Monero transactions with a specially patented software.
Monero (XMR) Price Forecast 2021-2026
There is therefore a lot in motion for Monero-how is this expressed in the XMR price forecasts? Currently (time of this article) XMR is trading at $281 – a drop of just over 7% in the last 24 hours.
- CoinCodex.com as currently for most coins, a bearish mood forecast for Monero: 14 technical analysis indicators signal bullish signals, but 16 bearish signals are opposite.
- WalletInvestor.com predicts a price of $373 on the XMR 1-year price forecast. Then follows a slight but continuous increase: by the end of 2026, Monero will reach $866.
- A similar growth path says DigitalCoinPrice.com ahead: by the end of 2021, the XMR price could reach $434. By the end of 2023, it will already be $588, and in 2027, according to the price forecast, Monero will even break the $1k mark with $1,156.
- Gov. Capital provides the most optimistic Monero price forecast: within the next 12 months, XMR will rise to $394, and by the end of 2026, the Monero price will be able to rise to $1,396!
- LongForecast.com stay cautious with the XMR price forecast: By the end of 2021, XMR will even drop to $278. 2022 will be a bullish year for Monero, the coin closes at $578. After that, however, XMR is mining again and will only be trading at $256 in exactly four years.
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