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What is Monero Coin Cap?

Cryptocurrencies by their very nature of the algorithm place certain capping over the total number of coins which could ever be mined or generated through the mining algorithm of that particular cryptocurrency. The concept of capping over the total number of coins which could be generated first of all was observed in the first cryptocurrency of the world that is the Bitcoin. Satoshi Nakamoto placed a capping of 21 million coins on the Bitcoin which could ever be generated. Then came Litecoin. Litecoin envisioned its mission statement as a better version of the Bitcoin. It removed the impediments such as greater transaction time so drastically as compared to Bitcoin. Similarly, it placed a total capping of 84 million Litecoins which could ever be mined or extracted.

However in the case of Monero coin the concept of capping works in a bit different fashion. It works in a way which is proportional to the total number of mined coins. Once it happens that the total number of coin extracted reaches a point of 18.3 million coins then the supply of money shall stop decrementing and the new coins shall be generated at the steady rate of 0.3 Monero coins per minute. This is to create an environment of socialism within the domain of Monero because as the difficulty reaches at higher levels only people having sophisticated hardware and greater computing resources are able to mine the cryptocurrency as we have seen in other crypto coins such as Bitcoin, Litecoin, and Ethereum etc. The steady rate of Monero coin production shall make it possible for people who are not very much resource intensive to be able to mine the cryptocurrency Monero. The incentive to mine Monero shall never end this way if the cap on Monero coin cryptocurrency works the as is stated in Monero’s vision statement.

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