There are a few coins that have the potential to become just as valuable as Bitcoin or possibly even flip it, based on tokenomics alone and Monero XMR happens to be one of them.

Monero has a lot of similarities with Bitcoin. For example, it operates on a proof of work consensus mechanism known as RandomX which also happens to be ASIC-resistant as Bitcoin. The two cryptocurrencies are very decentralized and they both have a very low circulating supply with BTC currently at 18.7 million coins and XMR at 17 million coins. However, Monero is still less valuable than BTC despite having a lower circulating supply.

One could argue that the only reason why Monero is still undervalued than Bitcoin is that it is less popular than Bitcoin. The latter has the first-mover advantage and is more talked about. As such, more people are in its favor compared to those purchasing XMR. This explains the huge market cap difference between the two. XMR’s market cap at the time of this press was $3.56 billion while BTC’s market cap is $587 billion.

Monero has an ace up its sleeve

The FBI recently boasted that it managed to recover some of the Bitcoin collected as ransom by the hackers responsible for the Colonial Pipeline hack. The incident called into question the security of holding BTC in exchanges especially if authorities can confiscate it that easily. On the other hand, Monero is completely fungible and its technology facilitates private transactions that cannot be traced.

The privacy advantage has been criticized because it can easily be used to launder money, but on the other hand, people still launder money in the form of cash. One could argue that Monero is the ideal cryptocurrency for those seeking full financial freedom without the possibility of government intervention.

The privacy advantage makes Monero an attractive cryptocurrency and its lower value makes it even more appealing. Remember when the U.S regulators presented a bill proposing all crypto transactions worth more than $10,000 to be reported to the IRS? If such a bill became law, it would only push people further into DeFi and it would also make Monero more appealing thanks to its privacy-centric nature. It would be a major catalyst for XMR because more cryptocurrency traders would want to exploit its privacy feature and as such, its market cap would soar.

XMR Price performance

Monero is currently trading at $198.08 which is notably higher than its 2021 low of $121.82. However, it is substantially lower than its all-time high of $519.13.

 Source: Binance

Its all-time high is a testament to the cryptocurrency’s potential and also a highlight of its currently discounted price point which would be an ideal entry point in case of another strong bull run. If Bitcoin is a store of wealth, then Monero fits into the same category given that it is also decentralized and more scarce than BTC.

For those worried about the likelihood of the authorities waging war against Monero in case of money laundering concerns, the risk is probably low. This is because Monero is decentralized just like Bitcoin and so it would be impossible to eliminate it from the internet. Furthermore, traders can take advantage of DeFi platforms where they can trade XMR without any concerns since there is completely no centralized authority. This is perhaps the best approach to crypto because traders can fully take control of their assets.

Conclusion

Monero is here to stay and because it is completely private, you are at low risk of being singled out by the authorities especially if you practice proper digital hygiene. Perhaps Monero might become just as valuable as Bitcoin and that does not seem farfetched especially as governments continue to push their crypto regulation agenda.