Will Monero Crash?

Will Monero Crash?

Will Monero Crash?

Monero is a digital currency that was founded in April 2014 under the name BitMonero. The currency grew primarily when it was adopted by the marketplace AlphaBay in 2016. As of April 2017, Monero became the 6th most traded currency in the industry. Amongst fears of a shutdown of illegal marketplaces, we might be seeing a Monero Crash pretty soon.

Monero is one of the cryptocurrencies which has maintained high privacy of its coins and coin holders. Monero boasts an untraceable, secure and private system to make sure that your funds transfers or deposits are impossible to detect.

This makes sure that any transaction done on Monero cannot be traced to a single person. Monero is also fungible. That means that all monero coins are similar to each other and can be interchanged to ensure privacy. Thus, you cannot identify one coin from another one and that adds a layer of security for the people using Monero. Monero also uses a ring signature system to hide even the amount of Monero transferred. That’s why Monero is the most private cryptocurrency in the market right now.

Unfortunately, there are many people who sometimes confuse Monero with drug money or something like that. This is not true because there’s so many people who now own and trade the coin. Monero isn’t just a way to “launder money” or receive money from “drug deals”, it’s a tool used to maintain privacy whilst trading.. What you choose to do with your Monero is your prerogative.

Why there might be a Monero Crash?

Since Monero has become the go-to currency for Alphabay, a marketplace for pretty much everything, the coin holds value as long as people use it to purchase things on Alphabay. However, that makes Monero dependent on an illegal or unregulated website which could be shut down any time soon. Unfortunately, that would mean that Monero would have a serious crash if there are hints that the website is soon to be shut down. A lot of investors who do not engage in such activity could be affected in the short run if something like this happens.

Nonetheless, Monero provides great privacy for users. The currency is highly fungible, which means it can be interchanged with no change in perception of value. Monero is also practically untraceable. So if you receive an XMR you can’t trace it back unlike other block-chain based currencies. Monero is decentralized and verified through mining, but the information is kept secure. Although Monero has great features like these, we might see a Monero Crash coming up soon when governments crackdown on illegal marketplaces.

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About Article Author

Michael Serrano
Michael Serrano

Michael is an engineer and a bitcoin evangelist. He has been involved in cryptocurrencies since 2013. His biggest wish? 1 billion users of bitcoin, ether and litecoin by 2020. In the last 10 years he has worked for various early-stage start-up as a back-end developer.

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