The cryptocurrency market is getting more competitive and crazier with every passing day. There are new products being thrown into the market without any regard for quality or consistency of performance. One currency that stands tall amidst all the chaos and confusion happening right now in the world of cryptocurrency is Monero. With its sterling performance, Monero has emerged as one of the favorite cryptocurrencies for those in awe of digital money. There are more people interested in Monero mining now than ever before.
Monero was created in 2014 and in the span of four short years; it has raced ahead of several tough and worthy competitors to grab the 10th spot among hundreds of cryptocurrencies available on the market. Monero boasts of a more than impressive market capitalization of $3.26 billion.
From a value of just $10 in 2017, Monero jumped by a whopping and mind-boggling 4800 percent in the early months of 2018 to earn a value of $494 per coin. The performance is stated to be nothing short of stunning and miraculous by cryptocurrency observers and experts. No wonder then that every cryptocurrency investor has Monero high on their shopping list. In fact, the stunning performance of Monero has even changed the minds of many skeptics who earlier believed that cryptocurrency is a waste of time and effort.
However, not everyone is convinced that Monero mining is the best thing to have happened to the cryptocurrency market in recent times. There are some skeptics still around, asking pointed questions about how Monero mining works and whether its valuation will hold for long term.
Before you get the answers to these questions, it is important that you learn more about Monero.
Q1: What is Monero (XMR)?
Monero is a digital currency on the lines of the more popular cryptocurrency Bitcoin. Monero can also be used to send and receive payments but it stands apart from Bitcoin in many ways. The biggest difference is that while Bitcoin is decentralized but not private, Monero is both as the unique technology used in Monero mining allows all transactions to remain 100 percent private and secure. Only the sender and receiver will have details of the transactions involving Monero – no one else. This unique privacy that Monero offers is what endears this digital currency to miners, developers and investors alike.
However, privacy is not the only feature that puts Monero in a different league. There are many other unique features that Monero offers.
Did You Know That Monero Is Fungible
Fungibility is a term used in the world of currency. It denotes the interchangeable aspects of the units of a currency. In simple terms, fungibility is the ability to replace a $100 bill with two $50 bills. The dollar and the euro are also fungible – to explain the case.
While Monero is fungible, Bitcoin is not and for a simple reason. As Bitcoin transactions can be seen by the community, there is a chance that because someone might not accept a Bitcoin that has been probably used in an illegal transaction earlier. This is highly unlikely to happen with Monero because the transactions are confidential, secure and private. All Monero coins are regarded as of equal value and can be exchanged for another without any fuss.
And Yes! Monero Mining Does Not Require an ASIC
Bitcoin mining is carried out using an ASIC or Application Specific Integrated Circuit. It is a special type of hardware that’s expensive and has proved to the bane for many Bitcoin miners, especially the amateur ones, as it eats into their profits.
Monero mining can be done without an ASIC. All you need is the CPU/GPU of your computer for mining Monero. This makes Monero an extremely attractive bargain for novice cryptocurrency miners and also for those who are unable to make the heavy investment but love the thrill of mining cryptocurrency.
What does Monero Offer Miners? A Valid Question:
Those who participate in Monero mining are rewarded XMR coins, the currency equivalent of Monero. They get these coins when they verify a transaction on the Monero network. When they use their resources to validate a group of transactions they get brand new Monero coins as rewards. The current reward for verifying one transaction block is 4.99 XMR approximately. There is a small transaction fee too.
What Is The Time Taken To Mine One Monero Coin?
According to statistics available, one Monero block is mined at a two-minute frequency at present. This means that one XMR is mined every 24 seconds if we take into consideration the fact that the reward for every Monero mining transaction block at present is 4.99 XMR. This is simple and straightforward math. However, you can use the Monero mining calculator to find out similar details for mining activities happening on a larger scale.
Please also take note of the fact that profits from Monero mining will also depend on other factors such as the cost of energy consumed, hardware expenses and hash rate.