Bitcoin (BTC) vs. Monero (XMR): Which is Better?

This comprehensive article will compare two cryptocurrencies on the market today: the renowned crypto giant Bitcoin and the privacy-focused Monero coin. We’ll explore their history, how they came to be, and look at variables such as their market cap, block size, and daily transactions.

Finally, we’ll explore their future, where you can buy them, their risks, and their similarities and differences.

 

History

While cryptocurrencies are a relatively recent innovation, they have gained much attention since they were created, and most have fascinating histories. Bitcoin, in particular, has been the subject of much discussion.

Let’s take a look at the history of BTC and XMR.

Bitcoin (BTC)

Bitcoin’s whitepaper was released over a decade ago and was made by a developer (or several developers) under the pseudonym Satoshi Nakamoto. The paper covers the uniqueness of Bitcoin as a purely peer-to-peer e-cash system.

Following its release to the public in 2009, Bitcoin received much international attention and became a game-changer in the financial world. Many took up Bitcoin mining. However, it also received a lot of negative press from those who believed it had no intrinsic value. The CEO of JP Morgan Chase & Co, Jamie Dimon, stated that “Bitcoin has no future.”

Despite the amassed criticism, Bitcoin is currently up nearly $ 19 000 from its original price – a pitiful amount in comparison.

Monero (XMR)

Monero was initially released in 2014 and is, like Bitcoin, a decentralized cryptocurrency. It boasts the third-largest community of developers, behind Ethereum and Bitcoin. Monero has, at times, been used for illicit reasons due to its useful privacy features, although that wasn’t its intended purpose.

Unfortunately, the list of nefarious uses runs far: from being used as ransomware, as a medium of exchange for darknet markets, and for cryptojacking, hijacking CPUs to mine Monero.

 

What Are They, And Why Were They Created?

Bitcoin and Monero can be bought, sold, and traded, but do they serve another purpose? Why were they created? That’s what we’re going to explore next.

Bitcoin (BTC)

Bitcoin is a digital currency made for the sole purpose of creating independence from the central bank; it’s a means for Bitcoin users to make secure online transactions away from any regulatory authority.

Bitcoin was created in response to the global financial crisis of 2007-2009 and the growing mistrust toward governmental financial authority.

Monero (XMR)

Monero is also a digital currency but provides highly intricate privacy features, helping users achieve the utmost anonymity. It uses complex features such as zero-knowledge proofs, ring signatures, and IP addressing-obscuring.

 

Price History

The price history of a cryptocurrency is an important metric to consider when evaluating its viability. So, let’s explore the pricing history of Bitcoin and Monero.

Bitcoin (BTC)

Bitcoin was initially valued at well under a dollar – practically worthless in terms of investment. However, time told a different story. Investors who put their money into Bitcoin when it was released are now thousands of dollars wealthier for each Bitcoin they own.

Bitcoin saw significant growth in 2017, when, for the first time, it was valued at over $1,000 and peaked at over $10,000 at one point. There’d be fluctuation from that peak, with the coin steadily dropping in value over time before bouncing back to a stable price in 2020.

2021 shows Bitcoin’s highest gains; it was valued at tens of thousands of dollars for long periods before declining rapidly in 2022 and evening out to its value today at about $ 19,000.

Monero (XMR)

Monero, initially released in 2014, has had a lot of time to get to where it is today. While its price never changed, fluctuating at around $1-$2 up until mid-late 2016, it experienced huge increases from 2017 until early 2018, going as high as a few hundred dollars. It’d rise and dip until the start of 2019, holding for a few months at around $40-$50.

Again it rose and dipped before climbing in 2020 and then spiking in mid-2021, just over its original peak in 2018. Of course, it dropped dramatically in price after this and experienced a lot of mild ups and downs before arriving at its current price of $ 143.72.

Market Cap

What is the market capitalization of Bitcoin and Monero? Let’s look at this next.

Bitcoin (BTC)

Bitcoin holds the position as the first-ranked cryptocurrency in the world for a good reason. At the time of writing, the cryptocurrency boasts a market cap of $370,505,847,554.

Monero (XMR)

Monero currently has a market cap of $ 2,615,962,435, ranking 27th compared to other cryptocurrencies.

 

Daily Transactions

The daily transactions of a cryptocurrency are a good indication of its popularity and can help predict whether its value will rise or fall.

Bitcoin (BTC)

Bitcoin’s 24-hour transactions are high at $ 24,057,045 889. This is higher than XRP’s (who holds 6th place) market cap.

Monero (XMR)

As of writing this, Monero boasts a 24-hour volume of $59,386,017.

 

Block Size

The block size is the amount of data a block can hold and affects the number of transactions completed each second.

Bitcoin (BTC)

Theoretically, Bitcoin’s block size is capped at 4 MB, although it is usually 2 MB. In the past, and per Satoshi Nakamoto’s design, Bitcoin had a block size of 1 MB, severely limiting the number of transactions it could accomplish.

Monero (XMR)

Unlike Bitcoin, Monero has a dynamic block size that varies depending on factors such as the number of transactions in a day, etc. Essentially, there is no absolute limit to Monero’s block size.

 

Similarities

Bitcoin transactions and SMR use a proof-of-work mining algorithm where miners validate their transactions by solving a mathematical equation using their computer or specialized mining device.

Both Bitcoin and XMR have a very secure mining algorithm.

 

Differences

Although many would believe otherwise, Bitcoin transactions aren’t completely anonymous as they can be traced on the blockchain. Monero, on the other hand, uses Ring Confidential Transactions so that recipients and senders can’t be identified. It can also hide transaction amounts.

In addition, Monero has very slow transaction speeds, with Bitcoin able to do the same transaction at double the speed. You’d struggle to do multiple Monero transactions during peak times. However, due to the younger currency’s new security technology, known as “bulletproofs,” Monero’s average transaction fees are lower than those of Bitcoin.

However, Bitcoin transaction fees may be subject to change in the future.

Risks

Investing has always come with risks, but with high stakes come high rewards. Let’s dig into the risks that Bitcoin and Monero are facing, respectively.

Bitcoin (BTC)

Bitcoin has many risks, the primary of which, at the moment, involves the risk of governmental control and regulation. Another concern is that a tiny percentage of investors hugely influence the coin’s behavior.

The first is a significant concern, particularly considering China’s total ban on cryptocurrency. All cryptocurrencies face uncertain futures, particularly Bitcoin, the world’s most well-known cryptocurrency.

Secondly, because investors’ attitudes control Bitcoin and just a small percentage of Bitcoin owners control a large portion of the currency, its value is subject to their momentary decisions. But that’s always been an issue with Bitcoin; it’s just more volatile now.

Monero (XMR)

Monero is at high risk of being regulated and perhaps even banned outright by governments worldwide. Due to its privacy features, it’s frequently used as a medium of exchange for illegal activities.

 

Where To Buy

Now that you’ve done a relatively thorough evaluation, where can you buy these cryptocurrencies?

Bitcoin (BTC)

You can buy Bitcoin at crypto exchanges like Kraken, BlockFi, Crypto.com, FTXUS, and Binance. You can also use Bitcoin ATMs or go to 7-Eleven stores to make purchases. Bitcoin has been adopted everywhere and is very easy to get nowadays.

Monero (XMR)

You can buy Monero at various crypto exchanges, including but not limited to Coinmama, Coinbase, Binance, Kraken, OKX, and KuCoin.

 

Exchanging Bitcoin For Monero

You can easily exchange Bitcoin for Monero on platforms such as Changelly. At the time of writing, 1 Bitcoin is worth over 133 Monero coins.

 

Future Plans

What does the future look like for Bitcoin and Monero? That’s what we intend to evaluate next.

Bitcoin (BTC)

Bitcoin is likely to increase significantly in price in the coming years, with predictions putting it at hundreds of thousands of dollars per single Bitcoin. In addition, many investors and Bitcoin enthusiasts feel confident that it’ll continue to be adopted as a form of currency by global companies worldwide.

At the time of writing this: Home Depot, Whole Foods, Twitch, ExpressVPN, and AMC all accept Bitcoin as payment for products or services.

Monero (XMR)

Monero investors can be glad that the coin’s future is bright as long as no major regulatory changes occur. It’s anticipated that it’ll reach prices as high as over $300 by 2023 and more than $600 by 2026.

In addition, Monero is frequently improving with network upgrades, which we’re sure will persist into the future.

 

Sources:

https://www.redbull.com/int-en/theredbulletin/bitcoin-critics-arguments

https://bitcoinmagazine.com/guides/what-is-the-bitcoin-block-size-limit

https://coinmarketcap.com/currencies/monero/

https://www.coindesk.com/tech/2022/08/12/privacy-protocol-monero-is-getting-a-major-upgrade/

https://currency.com/monero-vs-bitcoin-the-pros-and-cons