Monero For Beginners 7
Monero For Advanced 7
Monero Quiz 0No items in this section
Advantages And Disadvantages
Monero has plenty of advantages. One of the many is the best privacy features on any cryptocurrency and that the transactions cannot be linked. The transactions are also not traceable since the blockchain doesn’t have a block limit and it is dynamically scalable.
When the Monero supply runs out there will be continuous 0.3 XMR/min supply to incentivize the miners. Monero has even achieved staggering growth financially. Monero is transparent and anyone can make their transactions visible to the person of choice which makes monero also auditable.
Monero has also a superior mining algorithm as a strong element of its advantages. The mining is the process of running a program on a computer which verifies the crypto transactions that other people announce to the worldwide network. The creators of Bitcoin didn’t choose well when it comes to the mining algorithm. This one runs on a faster custom made mining chips which means that it is almost completely pointless for any ordinary computer to try and mine this cryptocurrency.
Monero has a mining algorithm that was designed such as that ASICs will not have too much of an advantage over ordinary computers that are owned by the people. This means that people all over the world will be leaving the mining software running on their home PCs and will earn monero in exchange for running the software that processes and verifies other Monero transactions. If someone else is paying something, then there will be a financial incentive for people to mine XMR using the spare capacity of the PC that they have access to. Far more people will be willing to use their existing computers to do this task because no special equipment is required.
Also, when the transactions are announced to the monero network, they become a part of the block so Monero blocks are produced every 2 minutes while Bitcoin produces one every 10 minutes. Monero has been designed to have an automatically adaptive block size limit which means it will automatically be able to handle a lot of transactions by automatically expanding the size of the block to accommodate higher future transaction volume.
However, the coin has some disadvantages as well. Even though it was made ASIC resistant to prevent centralization, 43% of the hashrate of Monero is owned by 3 mining pools. The transactions are larger than the other cryptocurrencies such as Bitcoin because of the amount of encryption that is imposed. it is now most suitable for beginners which is one of the reasons why it was not widely accepted and adopted.
Monero is not bitcoin-based coin therefore it has faced difficult issues in the sense that it is harder to add things to it. Cryptocurrencies are risky investments and it is always a good idea to do your own research before investing. Remember to diversify your assets and it is not advisable to allocate more than 1% of your liquid net worth into any currency because it will leave you exposed to volatility.