Monero is currently in 27th place among the cryptocurrencies in terms of value. It is also one of the 10 most important cryptocurrencies apart from Bitcoin. But what is Monero exactly? And what should you know about it? This post answers five frequently asked questions about Monero.
What Is Monero?
Monero is an open-source and privacy-oriented cryptocurrency that people can use to buy goods and services. It got its name from the Esperanto word for “coin.” Esperanto is dubbed the world’s most spoken constructed auxiliary language internationally. That means it was most likely developed by a second language learner and is used to communicate with a place’s non-natives who may not understand the primary language spoken in it.
When it was first introduced in April 2014, Monero was known as “Bitmonero,” which is “Bitcoin” in Esperanto. When its maintainer split from Bitcoin, “bit” was dropped.
Who Created Monero?
Nicolas van Saberhagen is Monero’s original author. Not much, however, is known about him but he did create CryptoNote, the application layer (which identifies the shared communication protocols and interface methods a code uses for communication) on which Monero is built.
Over time, the work of developer Gregory Maxwell was used to improve Monero’s privacy features.
Is Using Monero Illegal?
While the privacy and anonymity Monero offers have been abused in relation to cyber attacks like the infamous WannaCry outbreak of 2017, using, owning, and mining it is not illegal per se although some exchanges in Australia and South Korea delisted it.
What Makes Monero Different from the Rest of the Cryptocurrency Pack?
Monero boasts of being a private digital currency. Using it is like running your own bank. No one else can know your balance or see your transactions. Only a handful of cryptocurrencies are as private as Monero. These include Zcash, DASH, Verge, and Beam. Among them, Monero has the most significant value.
Monero’s value comes from the fact that people want to buy it. When people run out of interest in buying it, it will lose its value. Its price increases when the demand for it exceeds its supply and decreases when the opposite happens.
Can You Mine Monero?
There are two ways to obtain Monero, and yes, one of them is through mining. To do that, you can follow the same steps in mining other cryptocurrencies like Bitcoin. Monero mining, however, doesn’t require using an application-specific integrated circuit (ASIC), making it ideal for beginners or those who don’t have the financial resources to buy specialized equipment. As of May 2021, there are 17.9 million Monero coins in circulation.
The far more straightforward way to get Monero is to go to a cryptocurrency exchange and buy coins with either paper money or fiat currency, or another cryptocurrency.
What Can You Use Monero For?
Many establishments, ranging from exchanges to entertainment providers, accept Monero payment. Apart from exchanging the coins for money and paying for various services, you can also buy goods with Monero coins, including AUGET candles, trucking products and power inverters from Direct Depot, and IT security products from SecPoint. A complete list of the goods and services you can use Monero for can be found on the cryptocurrency’s Merchants & Services page.
How Do You Convert Monero to Money and Bitcoin or Other Cryptocurrencies?
Converting Monero into other cryptocurrencies is easy. You just need to go to a reputable cryptocurrency exchange. Type the amount you want to send into the input field and choose the right cryptocurrency from the drop-down list. You can instantly see the converted amount on the right. The amount differs from one cryptocurrency to another, of course, as every coin has a different value (e.g., 1 BTC or Bitcoin = US$37,050 while 1 XMR or Monero = US$239).
If you want to exchange 10 BTC for Monero on Godex, you will get 1,285.36999771 XMR as of 10 June 2021.
Clicking Exchange will ask you for your Monero address. Just key it in, along with the other required details, and you’re done.
While Monero may not have the highest value among the cryptocurrency choices, it is said to be one of the most secure and cheapest to invest in.