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Should I buy Monero (XMR) in 2021?

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kevinnag58
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INTRODUCTION

Within today's investment markets, cryptocurrencies remain one of the most risky of all. Significant sums of money are lost daily, and this loss is exacerbated by an investor's failure to do due diligent research prior to opening their wallet. Research is no guarantee against loss so the axiom 'you should never invest more than you can afford to lose' applies.

But research does level the playing field somewhat. It is an integral step in the investment decision process. So let this sub-section of the Monero Coin Guide be your research starting point on making an informed decision whether or not to invest in Monero (XMR)

*SHOULD I INVEST IN MONERO (XMR)

*FACTORS IN FAVOR OF INVESTING IN MONERO (XMR)

  • Monero split from Bytecoin in 2014 and as such is a relative 'old-timer in the cryptoverse.
  • Monero aims to be the best electronic cash, saying the components of the best digital money should address the Electronic Cash Triangle:
  • In pursuing the goal set forth in the preceding bullet, Monero developed three privacy systems:
  1. Ring Signatures (Sender's Privacy)
  2. Stealth Addresses (Recipient's Privacy)
  3. Ring Confidential Transactions (Transactional Privacy)
  • Like Bitcoin, Monero (XMR) is a Proof-of-Work coin. However, mining Monero does not require the powerful computers that Bitcoin does, so Mining is open to more participants who can mine with their present laptop.
  • Monero's consensus system, CryptoNight, allows the profitable mining of XMR using CPU's AND GPU's, and prevents the centralization of mining.
  • Monero possesses the advantage of unlimited scalability. The system has no set block sizes and it is the miners decision as to the size of the block they wish to approve.
  • Monero's network functions anonymously by employing the use of multiple keys.
  • There is a limited supply of Monero (XMR) coins in circulation.
  • Year over year there is a large growth in network transactions performed.
  • Several payment gateways (NOWpayments, CryptAPI, and CoinPayments) accept Monero (XMR) for settlement.
  • Monero (XMR) now features 'Atomic Swaps'. With this, network transactions will either execute or fail and neither party loses money upon a transaction failure.

*FACTORS AGAINST INVESTMENT IN MONERO (XMR)

  • There are, at present, at least 63 privacy coins in addition to Monero (XMR). As such there is a high degree of competition in this space.
  • World Governments are not too keen on privacy coins. Several months ago in the US, the IRS invested millions into developing systems to uncover users of privacy coins. The IRS is also seeking to hire private contractors tasked with the job of insuring more transparency in the privacy space. And in Russia, regulators began using a a tracking system to break both Monero's and Dash's privacy security systems.
  • There is a very high bar for Monero to overcome based in the association of financial anonymity with shady and illegal activities.
  • In the same vein, Monero has the reputation of being 'the hackers' choice' further tarnishing the public's perception of the coin.

*TOKENOMICS

At the time of the writing of this article (August 26, 2021 @ 21:46 EDT), Monero is priced at $299.94/coin. There is presently a circulating supply of 17,981,035.03 XMR translating into a current market capitalization of $5,378,360,468, The total market supply of Monero is 17,981,035 giving it a fully diluted market capitalization of $5,372,188,632. Monero is currently ranked the number 29 cryptocurrency by CMC.

*PRICE HISTORY

No decision on whether or not to invest in a cryptocurrency should proceed in the absence of an examination of the coins price history. The general price history for Monero is as follows:

  • Looking at Monero’s price historically, it has been particularly volatile in relation to Bitcoin. For a long time after Monero was released, there was little volatility against the US dollar.
  • Monero’s volatility started largely in August 2016 where it reached a price of 0.02 Satoshis per coin.
  • Then in August 2017, Monero reached a price of 0.03 Satoshis, which was followed by a huge US spike $494 per coin. At the same time, Monero reached its highest market cap of over $7 billion.
  • Following this high, Monero’s price, both against US dollar and Bitcoin, entered a bear market declining in price for a long period gradually.
  • Since December 2018, Monero has been more stable, largely ranging in price.
  • To truly make the most out of trading the Monero cryptocurrency, it is most advantageous to trade it against Bitcoin instead of the US dollar as prices have been more volatile.
  • Till this day, Monero is higher against Bitcoin than the US dollar.

[Trading Education. Monero: The Only True Privacy Coin. (Accessed August 26, 2021).

*PRICE PREDICTIONS

Please remember that there exists no crystal ball for predicting the future price of a coin/token. Therefore, treat the follow predictions with caution as they are not a guarantee of future performance. Two of the more realistic price predictions found are as follows:

The monero price prediction from algorithm-based forecasting site Wallet Investor has the price rising from $342.09 at the start of June to $438.50 by the end of 2021. It predicts the price will climb to a fresh all-time high of $548.56 at the end of 2022 after some weakness earlier in the year. It forecasts the price will reach $875.20 by the end of 2025 and $926.49 in May 2026.

[Willing, N. Monero (XMR) price prediction 2021: should you buy the dip?. (Accessed August 26, 2021)

And:

The monero forecast from Digitalcoin projects a similar trajectory. It predicts the XMR price will average $364.16 in 2021, $404.06 in 2022, and move above $900 to average $970.1 in 2027. It estimates the price will average $1,024.64 in 2028.

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*CONCLUSION

This subsection has provided you, the potential investor in Monero (XMR), with the key elements to consider in reaching a final decision on this coin. In reaching a final investment decision many differing opinions should be sought out. Reliance on one research source is highly discouraged.

It is a given that every individual investor possesses a different present financial circumstance, tolerance for risk, and investment strategy. These must be weighed in light of the factors and information above provided in finalizing any investment decision.

Please remember, this subsection of the Monero Coin Guide is merely a starting point and should not be deemed a substitute for doing your own diligent research. And as always, never invest more than you can afford to lose. Good luck!

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