Monero (XMR) Defies Market Gravity as Prospect of PC Mining Gains Steam
Monero (XMR) regained 11.7% of its value in the days after Thursday’s market dip, and has shown stubbornness amid the general market fallout.
This show of strength by Monero can be attributed to two things – the fact that it’s a coin with an actual use-case, and possibly speculation regarding Monero’s shift towards fair mining.
XMR Stubborn; Privacy Coin of Choice
The use-case mentioned before is the ability to send private financial transactions. According to Bitinfocharts, the number of transactions on the Monero blockchain is just under 6,000. That’s actually rather low compared to Litecoin and Dash’s 23,000, as well as Bitcoin Cash’s 50,000 and Ethereum’s 700,000.
However, since Monero is private, we can’t see the values of the transactions on the blockchain explorer. If, as the story goes, the wealthy are really hiding their business dealings by using cryptocurrency, then a private chain is where they’d go.
Furthermore, anyone who has browsed the dark web’s drug markets will know that XMR is often a coin of choice for those conducting illicit dealings. That’s no small thing either, with millions of customers landing on the dark net markets every day.
It’s difficult to tell the real value of a coin when market manipulators are throwing it this way and that on a whim. But XMR’s performance relative to say, XRP, has highlighted a stark contrast.
For some context, the value of XRP has fallen by 20% in the past nine days, and over 43% in the past three weeks. Meanwhile, XMR is even stevens for the past nine days, as it stubbornly refuses to slide.
A few days ago I suggested that only Bitcoin and Ethereum were too big to fail. Unless a fatal flaw is found in Monero’s code, I’d suggest that the world’s highest capped privacy coin also comes pretty close for now.
Fair PC Mining Could Be a Reality for Monero
In the past week it was announced that Monero’s new RandomX algorithm had been subject to four security audits. RandomX is the plan to usher in Monero’s ‘egalitarian ideal’ for cryptocurrency. The audits identified and fixed a number of problems, and moved Monero one step closer to fair mining. From the Open Source Technology Improvement Fund:
“RandomX aims to make highly-optimized custom hardware slower or far less efficient than general purpose computer hardware that is available to everyone. The thinking behind this move is that hardware that is available to everyone is far more likely to be used by the general populace and enthusiasts.”
The goal is to make the mining algorithms complex enough that it makes the likes of ASIC mining machines obsolete, while rigging it to be compatible with household hardware. The people over at Weiss Ratings turned their eye toward XMR and RandomX recently. Weiss hyped the possibility of fair mining becoming a reality, tweeting:
“Monero’s RandomX algorithm aims to push the “egalitarian ideal” for cryptocurrency by making it harder for ASICs and FPGAs to verify transactions. It will level the playing field, as well as make it harder to perform a 51% attack and fight centralization.”
If the general public and enthusiasts could throw their PC power behind a particular coin, that coin would benefit from real decentralization. What we have now with Bitcoin and others is semi-decentralization, where a handful of large mining pools do all the work. Luckily, those pools have shown themselves to be benevolent thus far, and are heavily incentivized to remain so.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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