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Cypherpunks write code. We know that someone has to write software to defend privacy, and we’re going to write it.” ~ Eric Hughes, A Cypherpunk’s Manifesto, 1993
As the world becomes increasingly interconnected and Web 3.0 advances, governments are ramping up their efforts to develop CBDCs with the support of Big Data, Big Tech, and the WEF, all of whom have ambitious goals to achieve by 2030. However, these technological advancements, which are marketed to us as conveniences and ways to improve our lives and businesses, come with a hidden cost – our freedom!
The implementation of government wallets, tokenization of stocks, CBDCs, KYC, and the collection of more and more of our data will enable authorities to control our transactions, limiting our freedom to do what we want, when we want, and with whom we want. Nonetheless, those who value their privacy and strive to protect their wealth can still find ways to do so.
Monero (XMR) is a decentralized, privacy-focused cryptocurrency that has gained a significant following in recent years. Unlike Bitcoin and other cryptocurrencies, Monero is designed to provide users with complete anonymity, making it an ideal choice for those who value their privacy and security. It provides fungibility and true censorship resistance, two of the core pillars of sound money.
In this article, we will explore the importance of Monero and why it has become a popular choice for users around the world.
One of the main advantages of Monero is its privacy features. Unlike Bitcoin, Monero uses a unique technology called ring signatures, which make it virtually impossible to trace transactions back to the sender. This means that users can enjoy complete anonymity when using Monero, without having to worry about their transactions being tracked or monitored by anyone.
Another key feature of Monero is its decentralized nature. Unlike traditional currencies, which are controlled by central authorities such as banks and governments, Monero is completely decentralized, meaning that no one entity has control over it. This makes it a popular choice for those who are wary of centralized authorities and want to have full control over their own financial transactions.
Monero is also completely fungible. This is achievable using Stealth Addresses. Users can generate a unique Monero public address to receive transactions.
If you really value privacy, maybe you need a Monero. ~ Michael Saylor
In addition to its privacy and decentralization features, Monero is also highly secure. It uses a complex algorithm called CryptoNight, which makes it virtually impossible for anyone to hack into the system or steal funds; so much so that the US federal government’s IRS is convinced that people are avoiding taxes with it and has issued a bounty of $625,000 in 2020 for anyone that can hack it. This has made it a popular choice for those who are concerned about the security of their digital assets. It also uses a Proof of Work consensus with a mining algorithm called RandomX. CPUs are used to mine XMR instead of ASIC.
Monero is also much cheaper to send than both Bitcoin and Ethereum. This is because of Bulletproofs which make transactions lighter, much cheaper, and faster.
Another important aspect of Monero is its community. The Monero community is made up of passionate and dedicated individuals who are committed to the principles of decentralization and privacy. This community has played a key role in the development and growth of the currency, providing support, feedback, and ideas to help improve the technology.
Perhaps one of the most important aspects of Monero is its potential to revolutionize the financial industry. With its privacy, decentralization, and security features, Monero has the potential to provide a more secure and transparent alternative to traditional financial systems. This is particularly important for those living in countries with unstable financial systems, where corruption and fraud are common.
In addition to its potential to disrupt traditional financial systems, Monero has also become a popular choice for those in the tech industry. Many tech companies are now accepting Monero as a form of payment, recognizing its potential as a secure and reliable alternative to traditional payment methods.
Despite its many advantages, Monero is still a relatively new technology, and it is not without its challenges. One of the biggest challenges facing Monero is its association with illegal activities such as money laundering and drug trafficking touted by the governments of the world. While Monero itself is not inherently illegal, its privacy features have made it demonized and targeted by these institutions.
Another challenge facing Monero is its lack of mainstream adoption. While it has gained a significant following in recent years, Monero is still not widely accepted as a form of payment by many merchants and businesses. This makes it difficult for users to fully embrace the technology.
Despite these challenges, the importance of Monero cannot be understated. With its privacy, security, and decentralization features, Monero has the potential to provide a more secure and transparent alternative to traditional financial systems.
What Monero is NOT
Along with having an extensive user base, Monero has grown to be one of the most private cryptocurrencies accessible. Despite its emphasis on secrecy, there are still costs associated with utilizing it. When using a blockchain that is “currently” private, there is a future risk.
As new technological developments take place, a once-private transaction might be compromised and made publicly viewable so that monitoring software can track it.
This is not yet achievable for Monero using any known method. However, there is a risk associated with using any distributed ledger system. The number of Monero users as a whole is the maximum anonymity set you can have when utilizing the Monero. Although Monero does not provide absolute privacy, it does give users plausible deniability.
Things You Cannot Do with Monero (Benefits)
- On Monero it is impossible to look up an address if you are not the owner, unlike 99% of the cryptocurrencies on the market, where you paste an address and can follow the money.
- Transactions are confidential. Only the fee and amount are transparent. If you look at a Monero transaction on a blockchain explorer, it would look like this: ???->XMR->???. Unlike 99% of the cryptocurrencies in the market where the entire transactional history including senders, amounts, and receivers is shown. It is a blockchain analyst’s wet dream.
- It is impossible for anyone to publicly know the amount of a Monero wallet. Therefore, it is impossible to apply heuristics/statistics to understand what you do with your money. It is a blockchain analyst’s nightmare.
- It is impossible to look up transactions in a block. There is only the date and time of the transaction, and nothing more.
As the world becomes more digital and decentralized, it is likely that Monero will continue to grow in popularity and importance, providing users with a secure and reliable way to conduct financial transactions online.
Get some NON-KYC Monero!
Video Resources to Continue Your Learning
- Monero Explained
- Monero: Sound Money, Safe Money
- Monero Means Money: Cryptocurrency 101
- Behavioural Finance, Cryptocurrency Markets
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