In recent years, interest in cryptocurrency (digital currency) has developed tremendously. You probably already heard about Bitcoin, but there are many more digital currencies available in the market ( as much as 1,526 at the time of writing ). These currencies all work in fairly similar ways, yet there are also some significant differences among them. Cryptocurrency stands for ‘encrypted currency’, which means that the data of such a currency is highly encrypted. This makes cryptocurrencies secured and hard to breach. Monero literally means ‘currency’ and the abbreviation of Monero is XMR. The idea of Monero (and other cryptocurrencies) is primarily to facilitate a decentralized payment system. This means that transactions can be executed without the intervention of a third party, such as a bank. There is also no central server where all information must first pass. This has a few consequences:
- Transactions via Monero are very anonymous;
- Cryptocurrencies can never be frozen by authorities;
- Cryptocurrencies are safe and virtually impossible to hack;
- Transactions via a cryptocurrency are irreversible;
- The value of cryptocurrency is separate from the economy and is therefore very unstable.
Monero is not (yet) as large as certain other cryptocurrency, such as Bitcoin or Ethereum. This also means that you cannot buy much with Monero yet. This may change in the future, as Monero gets more prevalent and more and more companies/merchants accept cryptocurrency.
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