Two of the most widely used cryptocurrencies in circulation today are Bitcoin and Monero.
Bitcoin (BTC) was the first cryptocurrency, and its introduction sparked a global phenomenon. Bitcoin is a revolutionary concept because it allows anybody, not just governments, to create their own global money. Its developer, Satoshi Nakamoto, may have been a person or a group. Because of its revolutionary nature, Bitcoin has inspired the development of more than 4,000 other digital currencies as of this writing.
Monero is one of the several cryptocurrencies that branched out from Bitcoin (XMR). Monero was first released in 2014 under the name “Bitmonero” (Bit from Bitcoin and Monero from the Esperanto term for currency). Bitcoin provides more anonymity compared to traditional payment methods like credit cards, but it is still not completely anonymous.
All Bitcoin addresses and their transaction histories are publicly recorded on the Bitcoin blockchain, but unlike with credit cards, you don’t have to disclose your name or other identifying information to use Bitcoin (full record of transactions). Consequently, one’s privacy is compromised if one’s real-world identity can be linked to a Bitcoin address.
Monero wallets and transaction records, on the other hand, are fully anonymous.
Besides secrecy, additional characteristics of Monero and Bitcoin are weighed in this comparison. These characteristics include their fungibility, transaction speed, transaction fees, scalability, mining algorithm, network impact, supply, and pricing. Do not forget that you can always exchange XMR to BTC and vice versa using the Godex website.
How can one tell the Monero cryptocurrency apart from the Bitcoin cryptocurrency?
Bitcoin transactions are not anonymous despite the common notion. These transactions can be tracked in full on the public blockchain, and this includes stolen Bitcoin, as we have seen in the wake of several high-profile attacks over the years.
The encryption utilized to process transactions is what differentiates the Monero blockchain from the Bitcoin blockchain. Monero (XMR) ensures that both parties to a crypto payment remain anonymous by using a system called ring signatures.
The idea behind ring signatures is really rather straightforward. The person who must provide final approval on a transaction is part of a larger group that also includes those who have given final approval on similar transactions before. This generates dummy transactions, making it harder for other parties to trace the origin of a payment.
There has been a surge in the usage of ring signatures in Monero in recent years, which greatly improves the privacy it provides.
Which cryptocurrency—Monero or Bitcoin—should I use?
Much of what determines whether or not you should use Monero instead of Bitcoin depends on your unique situation.
You could like XMR since making purchases with it grants you anonymity similar to that of cash. You may just be paranoid about having your online activity tracked, and this doesn’t mean you’re making any illicit purchases.
However, it is true that the presence of Monero raises some pretty complex regulatory difficulties. There is the international worry that XMR may be used to launder money or avoid taxes, fund terrorists, or pay off criminals. Given Monero’s decentralized structure, tracking down such illegal dealings may be challenging.
In 2020, the IRS of the United States of America declared a $625,000 reward for the person or group who cracked XMR’s code. Chainalysis and Integra FEC, two forensic data analyzers, have been given the contracts.
You can find price predictions for Bitcoin, Monero and other cryptocurrencies, for example, Siacoin price prediction, on the Godex website.