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The market analysis suggests a bullish prospect for the Monero private currency; the XMR price has gained almost 70% in the last three weeks.
Monero has risen just over two thirds since mid-August, with significant gains since the beginning of September. The XMR price stood at $ 97 at the end of last month but rose to around $ 140 at the start of Tuesday. The coin was worth $ 138 at the time of writing.
This means that Monero's market capitalization has increased by just under $ 1 billion in the last three weeks, from $ 1.3 billion to the current value of $ 2.27 billion.
Monero is a currency for privacy: transactions on the network remain confidential between the parties using ring-signed encryption. This hides information including user identities, the amount sent and the time when the transactions occurred. The protocol is Proof-of-Work and uses the hashing algorithm, CryptoNote, which makes it resistant to ASIC.
Behind the XMR Price
Satis Group, an ICO consulting and research firm, recently published a report that provides for the encryption on the market the next decade. The company's analysts have predicted that Monero could undergo a surge in demand from investors that could potentially make every coin worth $ 18,000 over the next five years.
Satis said that the anonymity offered by private currencies made them the element of choice for crime or disapproved activities, such as tax avoidance. The company said it had identified the first signs of adoption, with Monero being used to pay ransoms and to recycle money.
"They [privacy coins] present a proposal of much deeper value within those markets," the report said. "Recently, we have already seen the first signs of adoption by some of these cryptoassets, the redemptions were sent to large companies where even the BTC could be traced and it was not the preferred method, money laundering and resource protection. "
Analysts predicted that Monero could make up about 60% of the market, with Zcash (ZEC) accounting for around 30%. Monero's active basebase development, as well as his ASIC resistance, were the main attractions; that XMR tokens are fungible (mutually interchangeable) could also lead to widespread adoption
Does Monero have a legitimate use case?
Hiding money is a big deal. The true extent of offshore deposits was revealed in 2016 when the disclosure of Panama documents (or "Mossack Fonesca") showed more than 200,000 companies and wealthy individuals, including the Icelandic Prime Minister, had sent money abroad for avoid taxes. [19659002] Although Bitcoin was celebrated as a currency that kept confidential transactions, the authorities recovered. The security company Chainalysis is able to deduce sufficient information from the network to determine the identity of both the sender and the recipient, as well as the amount sent.
Initially focused on BTC, the company announced in April that it was now able to track transactions on Bitcoin Cash (BCH) and other currencies.
A recent report, An Empirical Analysis of Traceability in Monero Blockchain, suggested that about 80% of Monero transactions could actually be traced. If anonymity is driving the price of Monero, this harsh (and little publicized) reality could make us dent.
A clear and feasible use case is the key to a sharp rise in prices; peer-to-peer coins seeking to replace the dollar will hardly gain significant traction.
Although Satis does not look like private currencies have a legal case, the Cambridge-Analytica scandal highlighted the amount of large corporate leviathan data, like Facebook and Google, have on their users. This publication claimed that anonymity on the internet is important, not just for reasons of privacy, but to protect confidential information and even citizens in oppressive or dictatorial regimes.
Economic empowerment is stripped when the central authorities devalue a national currency: this situation is playing all over the world today, and is causing the citizens of more countries to adopt cryptocurrency at an unexpected rate. An anonymous currency is an obvious port against the fallibility of the government.
Chainalysis, working in collaboration with law enforcement agencies, had already suggested expanding to track transactions on the Ethereum (ETH) and Litecoin (LTC) networks. [19659002] This week's surge on the XMR price has occurred on the back of the Satis report. Governments can not really prohibit Monero (how do you determine who has the XMR?), But a legitimate use case will help the wider reputation of the crypto community.
The author is invested in BTC and ETH, which are mentioned in this article.
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