Monero is one of the various cryptocurrencies that emerged in the wake of Bitcoin’s wild appreciation earlier this decade; it was launched in 2014 as the flagship currency of the CryptoNote protocol, which is geared towards deep privacy and obfuscation. In June 2018, Monero was ranked 12th on the list of the most transacted digital currencies thanks to the market capitalization of about $2.7 billion. For those who are curious, Monero is the word for “coin” in the Esperanto international language; it trades on cryptocurrency exchanges as XMR.
Quite a few tech startups and cryptocurrency analysts have been paying attention to the growth of Monero and to the apps that have been developed to interact with its blockchain. Coming up with a precise Monero price prediction is complicated, particularly when the issue of volatility comes into play; nonetheless, this article will focus on showing what a Monero price prediction will look like for 2018, 2020 and 2025. An analysis of market volatility will be presented after the price forecasts.
General Monero Predictions
Compared to other cryptocurrencies, Monero has enjoyed a very solid run in recent years. When its underlying blockchain was undergoing development, the prospect of a digital currency with deep privacy features received lots of excitement by the cryptocurrency community. Over the years, researchers appreciated Monero’s ability to hide not just the identity of currency holders and transaction participants but also the transactions themselves.
The privacy features alone make Monero very attractive because it is the closest you can get to real cash. Let’s say someone gave you $100 in complete privacy; if you travel to a community where no one knows you and spend those funds in different stores that have no registers and no surveillance systems, chances are that the history of those $100 will never be known, and this is how Monero essentially operates. Based on this level of obfuscation and transaction privacy, it is reasonable to formulate positive Monero price prediction scenarios over the next few years.
Monero Price Predictions for 2018
Along with the rest of the cryptocurrency market, Monero started off 2018 on a rocky and somewhat bearish note. Traders were cautious with their Monero price prediction scenarios in early 2018 because of Bitcoin’s rollercoaster ride from January to May. By the time June came around, the world’s leading cryptocurrency seemed poised for a bull run; however, some analysts believed that we needed one more correction before a major rally materialized.
Any Monero price prediction made in 2018 would be contingent upon what happens to Bitcoin, and the reason for this is that Monero is in cryptocurrency big leagues. As long as XMR has a market capitalization large enough to keep it on the top 15 list of digital currencies, it will be subject to Bitcoin pricing and volume. In early June, XMR was trading around $163 at a time when Bitcoin was in recovery mode and heading towards $8,000. Since XMR is a currency that lends itself to technical analysis, it is important to consider the direction of its 50-day exponential moving average, which was on a very bearish mode in early June. The medium-term outlook for Monero would be around $216 as soon as Bitcoin starts moving; a return to $494 by December is likely as long as the cryptocurrency market stays on a positive track.
Monero Price Predictions for 2020
When looking at the longer term outlook for XMR, there is a crucial factor to consider. This is the potential influence that controversial tech entrepreneur John McAfee can bring to the cryptocurrency markets. McAfee is the godfather of information security; decades ago, he became the first tech executive to predict that one day we would all have to worry about malware. These days, McAfee leads a strange life filled with political ambitions in the Libertarian Party, but he has been a strong promoter of Monero, which he believes may one day catch up to Bitcoin.
But there can be a cryptocurrency that manages to catch up to Bitcoin in terms of pricing. In this case, Wall Street traders would probably stage a riot. What could happen, however, is that Monero may become a stronger digital currency in terms of widespread adoption. Let’s judge by the reaction to the Facebook and Cambridge Analytica data privacy scandals of 2017 and 2018. As such, it is not unreasonable to think that people will likely look for digital currencies that offer true anonymity. To this effect, XMR could reach $500 in early 2020 and even $900 in late 2020. Some of the most bullish analysts believe that Monero could reach $1,000 by mid-2020. However, such opinion would be contingent upon Bitcoin breaking the $25,000 mark and holding it for most of 2019.
Monero Price Predictions for 2025
It is more realistic to set a Monero price prediction of $1,000 for the year 2025 than for 2020. The reason would be the pace of mining that has been taking place since 2014. Unlike Bitcoin, cartels do not control XMR mining. It is more open and egalitarian for prospective miners. They do not have to invest thousands of dollars in powerful hardware setups. Thus far, there have not been major conflicts over Monero mining. However, there have been some reports about malware that has this purpose.
Once Monero starts enjoying greater circulation, there will be a greater need for mining. This happens for the purpose of maintaining the ledger and enabling transactions. If the market cap of Monero surpasses the $5 billion mark by 2025, a price of $1,200 would not surprise us. This would happen particularly if people continue to mine this cryptocoin at the current pace.
Volatility Overview
Compared to Bitcoin, Monero features less of a volatility issue. The blockchain that supports XMR is more advanced than Bitcoin’s, and the core development team doesn’t usually get into conflicts. As with any other digital currency in 2018, wild price shifts will happen from time to time; widespread adoption would be the only way to bring complete stability to Monero and all other cryptocurrencies.
Conclusion
Monero is one of the most interesting cryptocurrencies in use these days. Moreover, its structure makes it the most similar to fiat currency. XMR’s intended lack of transparency will make it difficult to circulate in official capacities; however, there will always be an interest from people in keeping their monetary transactions private.
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