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Coin Reviews

Monero Coin SWOT Review | Everything You Need to Know

By April 18, 2018 January 15th, 2019 2 Comments

Here at Cryptocurrency Australia, we strive to provide information and resources necessary to successfully navigate the cryptocurrency space. A detailed coin review is an important step in familiarising oneself with digital assets and how they work. In this post, we are going to take a detailed look at the Monero Cryptocurrency. We’ll cover its history, development, and token economics by performing a full Monero Coin SWOT review.

The SWOT acronym stands for 4 specific points of analysis: Strengths, Weaknesses, Opportunities, and Threats. But before we dive into our Monero coin SWOT review, let’s start with a brief overview of this blockchain project itself to get some background.

What is Monero?

With their original launch back in mid-2014, this project began with no pre-mine or ‘insta’-mine. Basically, this means the emission of the currency followed a programmed release rather than through distribution to developers or founders. Some changes occurred early on with a group of core developers forking the original chain, which is now Monero cryptocurrency.

Don’t feel like reading? Here’s our video version of the Monero coin SWOT review:

Monero focuses on usage wherever a user requires privacy and anonymity. As such, it is completely untraceable and fungible. Essentially, this means that specific tokens can’t be blacklisted. The total supply or quantity of XMR tokens is as equal in terms of ‘value’ as one another.

Privacy enforcement involves using ring signatures and ring confidential transactions. Additionally, other privacy measures include stealth addresses to obfuscate transaction quantities and the origin and destination. In simple terms, it uses one-time addresses so that for each transaction there is one single address for just that transaction.

Monero also has the option of a ‘view key’, whereby account holders can enable others to have a transparency option to view an address or transaction.

Now that we’ve given a short background description, let’s delve into our Monero Coin SWOT Review.

Monero Coin SWOT Review

Strengths:

  • To start, the Monero project has been in development and listed on cryptocurrency markets since 2014. Unlike many other crypto projects, they have a long operational history.
  • Full open-source code and currently ranked #31 in active development on Crypto Miso, with over 1000 commits and over 100 contributors to the code.
  • Uses the CryptoNote PoW algorithm, which is based on sound academic research in cryptography.
  • Has its own Monero Wiki, called Monerobase.
  • Plenty of information available on the Monero website for those wishing to dive deeper into the technical side.
  • Has a working and easy to use block explorer.
  • Fixed supply schedule of 0.3 XMR per minute, so a rise in demand could see appreciation for the long term.
  • Uses an ASIC resistant proof of work consensus algorithm.
  • Can be mined using P2Pools.
  • Very good communication with the community, investors, miners and the public with full logs of development meetings going back as far as 2016. Additionally, they create detailed Reddit posts communicating network upgrade requirements.
  • Has desktop wallets for Windows, MacOS, and Linux.
  • Has an Android mobile wallet and Ledger and are working on integrating it for their hardware wallets (e.g. Ledger Nano S).
  • Can be used through a number of payment gateways, such as WooComerce and Living Room of Satoshi, and is accepted by around 100 merchants.
  • Has over active 30 developers working on it.
  • The lead developer Riccardo Spagni, commonly known as “fluffypony,” is not afraid to show his face in public.
  • A huge community of 268K followers on Twitter, and 126K on Reddit.
  • Dynamic block size limit depending on network demand.
  • Continuing research and development through the Monero research lab.
  • Upcoming developments including integrating Kovri, a decentralised network-traffic hiding tool that will allow users to hide their location and IP address.

Weaknesses:

  • Only listed on 78 markets, so relatively illiquid when compared to Bitcoin (400 markets), or even Dash (152 markets).
  • Prone to forks of the code when miners reject upgrades to the protocol such as ASIC resistance. Just recently, 4 new cryptocurrencies were created as forks.

Opportunities:

  • Monero has the opportunity to remain the highest-ranked (by market cap) privacy-based cryptocurrency.
  • They could have more global markets list them and thus increase liquidity.
  • Lastly, they could gain endorsement from regulated exchanges such as GDAX or Gemini.

Threats:

  • Monero cryptocurrency faces a threat of being removed from exchanges in the future if regulation around exchanges continues.
  • Losing market share to other privacy coins such as Zcash or Dash.

Summary

Monero is a battle-proven and high utility privacy based cryptocurrency that has operated for many years. This is the age of cryptocurrencies. As such, we see the creation of new coins nearly every single day for any application you can think of. However, Monero is one of the few crypto OG’s that has existed since the beginning, before the age of ICOs.

With its large community and strong development team, there is a strong case for Monero maintaining its status as one of the top privacy coins in the cryptocurrency market for years to come.

Lastly, we hope you enjoyed our Monero Coin SWOT Review. To stay informed, be sure to check out all our other coin reviews.

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