Why is Monero priced (Is Monero valuable?)

08/20/2023 07:52 • Blockchain Briefs • 61 views

Why is Monero priced? According to coincryptorama news, Monero’s price is influenced by Bitcoin and Ethereum. As Monero is a very popular cryptocurrency, many people believe it can be an effective store of value. So, will the price of Monero rise in the future?

First, let’s calculate the average price of Monero based on trading volume. If priced in US dollars, one Monero is equivalent to about $200. However, if priced in Chinese yuan, which is around 10 million yuan, this means that Monero could increase by over 1000 times. Secondly, Monero has strong but relatively small volatility.

Is Monero valuable?

Editor’s note: This article is from BlockBeats(ID:blockbeats), authored by 0x29, authorized for reproduction by Odaily.

Monero has been attracting market attention since its launch in December 2017 and was accepted as a fiat currency cryptocurrency by some exchanges in May 2019. With Coinbase announcing in late March that it will provide Monero as a custodial wallet for Bitcoin, the price of Monero has risen to over $1000, raising questions about whether the project is truly valuable. However, considering the current situation, this instability may continue. Currently, there are already some digital assets such as Ethereum, BNB, and XMR that are striving to develop, but from a technical perspective, they do not have real advantages, making it difficult to price or evaluate them.

So, is Monero really valuable? According to an article published by Monero’s official website, the total supply of Monero is only 21 million, accounting for about 5% of the global circulation. At the same time, there are only 20,000 miners in the Monero network, and its tokens have not been fully diluted, making it the only cryptocurrency in the entire blockchain field with a significant amount of mining rewards.

For ordinary investors, they may not understand the difference between cryptocurrencies and virtual currencies. For example, if you think Bitcoin has high volatility or other altcoins cannot be compared to it, then the question arises: since Bitcoin is high-risk, why invest in Monero instead of directly purchasing these cryptocurrencies? In reality, many people consider it as a gambling use case and do not have high expectations for its potential and prospects. They just hope it can be one of the representatives of the next generation of internet applications. Although Monero is indeed an emerging type of cryptocurrency and still in its early stage, we believe it is a new form of cryptographic asset that can sustain long-term development because its anonymity and security are still controversial and may even be banned in certain circumstances, leading to a rapid increase in Monero’s price, making many people think it’s a scam. Meanwhile, Monero is also facing serious security vulnerabilities, and once there is a systemic hacking incident, it will affect user experience and have negative consequences. However, as Monero adopts the PoW mechanism and proof-of-work algorithm, Monero needs to achieve a “51% hash power” to become an effective consensus mechanism. Members of the Monero community generally believe that “I think Monero will become a payment token like ETH in the future.” How Monero operates Currently, many mainstream cryptocurrency companies are actively exploring the use of Monero as their reserve currency. However, the design concept of Monero is still very rigorous: “Essentially, Monero is a set of non-fungible tokens created by a group of geeks, and each token has different characteristics.”

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Why is Monero priced (Is Monero valuable?)

Is Monero valuable?

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