If you are looking for a digital asset with a focus on security and privacy, XMR is the coin for you. A simple way to acquire it is to select an anonymous cryptocurrency exchange that supports XMR and add the coin to your wallet. With the high volatility inherent to all cryptos, the cost per XMR coin may rise significantly in 2023. But what do the price trends say and the experts predict? Let’s review the price action and potential of XMR for 2023.
Overview of XMR
Monero (XMR) is a privacy-oriented digital currency that originated as a fork of Bytecoin in 2014. The Monero blockchain offers completely anonymous transactions. It means that the identities of senders and receivers and other details on the Monero blockchain are hidden and inaccessible to the public.
Monero’s privacy features are grounded on the combination of ring signatures and stealth addresses. Ring signatures disguise a sender’s identity by assigning a random signature to the user. Stealth addresses are one-off randomly assigned addresses for every transaction. Monero also uses Ring Confidential Transactions or RingCT to hide transaction amounts.
Another unique feature of XMR is its fungibility, which makes the coins exchangeable with one another, thereby retaining their value.
Also, Monero employs the proof-of-work mining protocol. The current reward, as of May 2022, is 0.6 XMR per block.
XMR: What Determines Its Price
At its launch in 2014, the coin was worth $2. However, by early 2015, XMR dipped to an all-time low of $0.25 because of weak demand. Then, In September 2016, XMR increased in value to $14. The January 2018 bull run experienced by most cryptocurrencies led to XMR trading at $469, but then the value fell to $50 at the end of that year. The next bull run that happened in 2021 drove the price of XMR to its all-time high — $517.62 per coin.
At the time of writing, the price of XMR is approximately $195, with a market cap of more than $3.3 billion. The current price benefit potential buyers as it is nearly three times lower than its all-time high.
Several factors contribute to XMR’s price directly or by impacting its popularity and, therefore, demand for the coin:
- Security features. Monero transactions are completely anonymous, so the user data is fully protected.
- Investment potential. Between 2016 and 2018, the price of XMR increased from roughly $2 to almost $500. Rules of financial cycles predict even higher growth for the coin.
- Transaction speed. It takes 2 minutes to confirm and add a block to the blockchain, compared to Bitcoin’s average of 10 minutes.
- Scalability. Monero does not have a rigid limit on its block size, which allows XMR to support a varying number of transactions.
A quick tip: it is not necessary to buy an entire coin. You may invest as much as you can afford.
XMR: Predictions for 2023
Here’s what expert algorithms forecast for XMR in 2023:
- Priceprediction.net experts claim that the present trend of XMR is bearish. They expect the minimum price of Monero to be $264 in 2023.
- DigitalCoinprice.com specialists reckon that the XMR will start in 2023 at an average price of $261.
- Gov.capital analytics promise XMR a price of as much as $391 in 2023.
- Walletinvestor.com experts forecast an average price of $222 at the beginning of 2023. But they claim that by May, Monero may reach the price of $296 per coin.
In essence, predictions indicate an upward trend for XMR. It means that this crypto is likely to become a profitable investment.
Is It Late to Purchase XMR?
Perhaps you are wondering if the time to buy XMR has passed or if the coin will ever match its all-time-high price. However, the outlook for XMR is quite positive based on the predictions.
Let’s do some calculations to forecast the potential profit. For example, if you bought 100 XMRs today at $19,500, then as per DigitalCoin’s predictions, your investment would be worth $26,100, resulting in a profit of $6,600 in just a year. In case you have got some bitcoins left, you can buy XMR for BTC to diversify your investment portfolio.