Monero vs Bitcoin vs Ethereum

Compared to the leaders of the cryptocurrency market, Monero (XMR) looks rather modest. Technically, it is one of the distant forks of Bitcoin. The key difference between the coin and its famous predecessor is increased privacy. Let’s take a closer look at the differences between Monero and the most famous cryptocurrencies.

Confidentiality

Privacy on the Monero network is achieved through the use of hidden addresses and ring signatures. Addresses are randomly generated for one-time use. Ring signatures are completely anonymous and it is still technically impossible to reveal the identity of the participants in the transaction. The network records the fact of using coins, but the amount of the transfer remains a mystery to outside observers. Today, XMR leads in terms of privacy.

Protocol and mining

Initially, all the compared coins worked on PoW. Bitcoin and Monero continue to use this algorithm, while the Ethereum blockchain is in a state of transition to a faster and more energy efficient Proof of Stake (PoS) algorithm. Thus, developers seek to solve the problems of security and scalability of the platform and reduce commissions.

XMR and BTS can be mined, and the era of ETH mining is already ending. Unlike Bitcoin and some other coins, Monero does not require ASICs to mine. The XMR mining algorithm aims to support small nodes and the coin can be mined on any processor or video card.

Ethereum is switching to PoS and after the transition is completed, ETH mining will stop. Blockchain will be supported not by miners, but by validators. To become a validator, you need to block at least 32 ETH. This is a large amount for the average user.

Reliability

Bitcoin’s resistance to a 51% attack is due to the high cost of implementing a network takeover. The protection of the Monero network is provided by the mining algorithm itself.

Ethereum loses in this indicator, the network is susceptible to 51% attacks.

Scalability

Insufficient scalability is one of the biggest problems that early blockchains faced. The maximum that Bitcoin is capable of is 7 transactions per second (TPS). Ethereum surpasses it by a little more than twice, and XMR by about 5 times. The current of Monero scalability does not create any particular problems for users yet.

One of the goals of implementing the Ethereum 2.0 update is to increase scalability. Technically, this will be achieved in the first phase. It is planned that TPS will increase to 100,000.

Supply of coins and capitalization

The total supply of Bitcoin and Monero is limited. The supply of BTS coins is 21 million and there are already more than 19 million coins circulating in the market.

The total supply of Monero is set at 18.4 million coins and they have all been released. The rewards that miners now receive are the so-called tail emission.

Ethereum has not limited the supply of coins and now there are over 120 million ETH in circulation.

Bitcoin remains the leader in terms of capitalization even in these difficult times. As of the second decade of May 2022, it is valued at $555,468,050,884.

Ethereum steadily holds the second position with a capitalization of $236,484,923,311. $3,195,910,949 capitalization of Monero provides the coin with the twenty-seventh line of the rating.

Is it worth investing in cryptocurrency

If you are reading this article, then most likely you have already answered this question for yourself. However, before investing in any coin, you need to learn more about it and weigh the risks.

Historically, digital assets are too young. On the one hand, this means that it is extremely difficult to predict the behavior of the market. On the other hand, there are unprecedented opportunities in recent history to increase capital.

In the air of the crypto-world, the chill of the approaching crypto-winter is more and more perceptible. However, this is not a reason to panic, it is not necessary to urgently convert Ethereum to Bitcoin or even leave the market. Study the situation, conduct your own research and distribute the risks so that the possible losses do not become catastrophic.