Does Monero Have a Future?
Monero has long been known as a privacy token. Unlike Bitcoin, which is difficult, but not impossible to track, it is truly difficult to find the executor of a Monero transaction. And even if you manage to find an executor, it is almost impossible to discover just how much Monero the sender sent.
As one of the remaining few truly private cryptocurrencies, the future of Monero is uncertain. Keep reading to find out more.
What is Monero?
Monero is a blockchain built on the Cryptonote protocol, which allows users to send cryptocurrency with almost full anonymity. It works by generating unique single-use addresses for every transaction, meaning it is impossible to connect the activity of a certain address with occurrences. As if that weren’t enough, Monero also uses RingCT technology to hide the actual numbers associated with transactions.
RingCT works by preventing the amount of a Monero transaction being registered in the public ledger during the transaction process. Additionally, it uses Ring Signatures to state the amount of the transaction within a group of possible transactions. This means that anyone trying to discover the amount of a transaction will know very little information about the exact transaction value.
Still not sure about the privacy of Monero? It seriously doesn’t end there as Monero also utilizes Dandelion++ which forwards all transactions to trust peers before adding them to the blockchain. This means it is nearly impossible to trace the origin of a transaction.
Can Authorities Trace Monero?
While Monero is undoubtedly the most private cryptocurrency we know of, there are a few ways that the transaction value can be discovered via high-level algorithmic strategies. That being said, it is almost impossible for an investigation to yield both the origin and the amount of the transaction—though there are more ways to discover the value of a transaction than there are to find the origin of a transaction.
The reality is, it is extremely difficult to track Monero transactions and as a result, it has become the favorite cryptocurrency of many websites which operate in gray legal areas. It is also suspected that Monero is the cryptocurrency favored by criminals and those trying to launder money though this hasn’t been proven.
The Challenges Monero is Facing
Unfortunately, Monero’s high level of privacy has led to the blockchain facing a fair amount of scrutiny. This is mostly because as cryptocurrency regulations increase, Monero still remains the outlier, as there is no way to implement KYC and AML on the platform.
As cryptocurrency and privacy enthusiasts, we love this aspect of Monero, but we also know that it could be bad news for the network in the future. Many governments around the world would much rather ban cryptocurrency as a whole than allow a blockchain to proceed without KYC and AML.
This is often reflected in the market, as Monero prices decreased, and remained low for a long time. Though, times may be changing though as it appears Monero is more resilient to the 2025 economic recession than other cryptocurrencies.
This could be for several reasons—such as that the individuals who own Monero are high level thinkers and politicians who can afford not to sell in an economic downturn, or that most of Monero is used by criminals who are also unaffected by economic trends. Regardless, it seems like a decent bet for those who are looking to leave Bitcoin’s whims.
Is Monero Banned?
Due to the high level of privacy that Monero provides, it is banned in numerous countries around the world. To date, though, it is not banned in the United States or the EU, though its future is uncertain.
Will Monero Go Up in Value?
Sadly, we don’t have a crystal ball and we can’t tell you whether or not Monero will go up in value. We do have some serious concerns about the cryptocurrency, as we are reasonably certain it will be unable to fit in any proposed regulatory framework by any government—meaning we doubt it will ever be legal. Rather, we suspect it is more likely to become illegal.
Just remember, making a cryptocurrency like Monero illegal doesn’t mean it will go away. Monero is out there forever, if it becomes illegal in the US it will just be delisted from several exchanges and may not be available for centralized wallets. You will always be able to trade Monero with a decentralized wallet and a DeFi peer to peer exchange though, no matter what happens.
Should You Buy Monero?
If you love privacy and Bitcoin but wish Bitcoin was less traceable, then Monero is 100% the token for you. We are reasonably sure it is a not a scam, though we cannot say with any certainty that it is a safe investment.
Buying Monero is a personal choice, but we do believe that it will weather regulatory difficulties in the future. But, if you do decide to buy, make sure you use a decentralized wallet and only buy Monero through a decentralized exchange. This way, if it does become illegal in your country, you won’t lose all your holdings automatically.
Additionally, Monero is a privacy token, and it’s important to recognize what it stands for—meaning if you do want it to succeed as a product, you need to take all the steps to ensure your interaction with the blockchain is kept on the down low.
Overall, we are huge fans of Monero and the privacy it tries to bring to the blockchain world. While we hope that Monero will withstand the current leaning toward cryptocurrency regulatory framework, there are no guarantees. Just know that even if Monero becomes illegal, it won’t go away.
So, if you do decide to invest in Monero, proceed with caution and ensure you are doing so with decentralized platforms. This way, even if Monero does become illegal, you will still retain your holdings. Remember, MintDice.com is here for your cryptocurrency education but we are not investment advisors so be sure to discuss all purchases with someone you trust before you make them.
