Monero (XMR), like all other cryptos, has taken a massive hit this year. Monero (XMR) has not only droppedin value, but also in market cap rankings, and is now trading outside of thetop 10. However, this drop doesn’t mean that Monero is about to drop to zero.It is actually one of the cryptos that is worth keeping an eye on, forinvestors that have a long-term view of the market.
If Bitcoin (BTC) is heavilyundervalued at $3400, then Monero (XMR) is even more undervalued at $44. Thisis a crypto that has the fundamentals to push it to new heights once money startsflowing back to the market. Here are a few reasons why.
Its fungibility aspect is highly valuable
Monero is private at the protocol level. This means that no one can trace one unit of Monero to a specific address, and blacklist it. This aspect to Monero (XMR) essentially gives it the same capabilities as fiat money. That’s because people transact in fiat, and accept it without having to care about its history.
For instance, if someone pays you $100 for some work done, that $100 note is equal to all other legal $100 notes in circulation. It doesn’t matter whether that $100 was at some point handled by a drug dealer or any other criminals. This aspect of Monero is probably the most useful in crypto. That’s because it instills confidence in people to transact, in the confidence that their coins cannot be blacklisted on the basis of their history.
As crypto becomes more widely accepted, this aspect to Monero will see its value rise significantly, based purely on adoption. Just to understand how big of a deal fungibility is, Bitcoin (BTC) and Litecoin (LTC) are considering it too. As such, an already fungible crypto that has lost more than 80% of its value in the crypto bear is surebound to make huge gains, once the bulls return. It will gain even more, if fundamentals will be the driving force for the next Bull Run, and not just hype, as was the case in 2017
Monero (XMR)’s adoption is happening
Most cryptos are basing their future value on the possibility of possible adoption. This is not the case with Monero (XMR). Monero (XMR) already has a significant use in the darknet. While this may sound like bad PR, it actually isn’t. That’s because of the fungibility aspect of Monero (XMR). Monero coins hold their value irrespective of where they are used. Therefore, arguing that the Darknet is bad for Monero (XMR) is the same as arguing that fiat is bad because it is used by criminals. The crime and the value of the money used are two different things. With a healthy rate of adoption in the underworld, once cryptos go mainstream and the masses understand the value of Monero’s characteristics, its usage will grow.
With such strong fundamentals supporting it, Monero (XMR) is one of the cryptos that is worth watching, now that the market appears to be bottoming out. Monero (XMR) did it big in 2017, and could repeat the same feat in the next Bull Run.