What’s the Difference Between Bitcoin and Monero?
Newcomers often associate cryptocurrency with its most well-known coin, Bitcoin (BTC). First launched in 2008 by the mysterious Satoshi Nakamoto, Bitcoin began to peak in 2011 and drew many investors’ interest in its speculative, decentralized nature.
Today, BTC isn’t the only coin that’s making the waves. One crypto that’s slowly been gaining popularity is the CryptoNote-driven Monero (XMR), named for the Esperanto word for currency. With a current circulating supply of more than 17 million and one of the largest developer bases next to Bitcoin and Ethereum (ETH), Monero may eventually go head-to-head with its older, more storied counterparts.
Investors who are choosing between Bitcoin and Monero may want to know what separates these two cryptos. To answer that, here’s a quick comparison of how they measure up:
Which Is the More Popular Cryptocurrency, Bitcoin or Monero?
To date, Bitcoin still dominates the world of cryptos in terms of value and market capitalization. Monero has a market cap of about USD 5.3 billion, but that has yet to match Bitcoin’s USD 907 billion. Bitcoin also has the advantage of name recall, which is considered the benchmark experience for first-time crypto investors.
Of course, there’s much room for change within the cryptocurrency market in the next few years. For reasons detailed further below, Monero may soon become the crypto of choice for an upcoming generation of investors.
Which Cryptocurrency Has Better Wallet Options, Bitcoin or Monero?
Given how many people use Bitcoin, there’s also a lot of variety in BTC wallet options. When choosing BTC wallets, users can look for features like live charts, exportable private keys, USB encryption, and in-app trading.
By contrast, now that Monero has also started to gain traction, XMR traders can enjoy open-sourced wallet options like XMRWallet. The privacy and control a trader can get from their Monero wallet will enhance their user experience with the crypto.
Thus, in terms of qualities like trustworthiness, both cryptos have solid wallet options behind them. That makes the wallet experience quite even between the two.
Which Cryptocurrency Is Easier to Mine, Bitcoin or Monero?
One big difference between BTC and XMR is the mining algorithm on which each depends. Bitcoin utilizes an SHA-256 algorithm and runs on custom mining chips called Application-Specific Integrated Circuits, or ASICs. ASIC computers may grant BTC miners more computing power, but they are also quite expensive and rule out any other computer option while the ASICs are running.
In contrast, Monero’s CryptoNight algorithm allows users to mine XMR using simple and ordinary CPUs. That means they can get to the task of mining right away, which might give them a better overall mining experience.
Which cryptocurrency promises full anonymity and privacy, Bitcoin or Monero?
Despite Bitcoin’s popularity, one of users’ biggest qualms with the crypto is its lack of privacy. Though BTC transactions don’t reveal personal information, they can be traced to an individual user’s wallet. Someone might be able to guess the user’s identity, country of origin, and—to the owner’s chagrin—how much money is in the BTC wallet. This could pose security concerns during BTC transactions in high-risk places and adversely affect negotiations between businesses and suppliers who exchange in BTC.
Monero’s true advantage is in privacy. Its highly secure ring signature system grants an XMR trader full anonymity regarding the details of their transaction, and its RingCT technology obscures each transaction’s value. For traders who value their privacy and don’t want any sensitive information leaked about their finances, Monero is the ideal option.
Which Cryptocurrency Is Cheaper, Bitcoin or Monero?
Though users of Monero back in 2018 may have complained about its high transaction fees, that is not the case today. Frequent and timely optimization efforts, like bulletproofing, have since shorn down Monero’s transaction fees by as much as 80 percent. Whereas Monero can be sent for only a few cents at a time, the transaction cost for Bitcoin can be up to twenty times more than that.
Monero also has the upper hand when it comes to cost per byte. Bitcoin possesses a maximum block size limit, whereas Monero has an adaptive one. Users may have to pay hefty fees to get their BTC transactions up to speed. However, Monero’s block size limit can automatically expand to accommodate more transactions on the chain. This ultimately results in fewer expenses and less stress for users who have to go through additional steps like double verification.
Which Cryptocurrency Is Truly Fungible, Bitcoin or Monero?
The last point of comparison worth considering pertains to true fungibility. In cryptocurrency, fungibility means that two coins are perfectly interchangeable or indistinguishable from each other. While newbies to crypto might assume that all coins are fungible, that isn’t always the case. Monero versus Bitcoin is a perfect example.
Each Bitcoin in circulation right now comes with a unique identifier, just like dollar bills have unique serial numbers. That means the individual currency units may have the same value, but they aren’t necessarily completely interchangeable. It also means that someone can trace the unit whenever it changes hands. In contrast, Monero’s fully untraceable quality makes it a 100 percent fungible cryptocurrency. XMR’s true fungibility makes it a preferable asset for traders who want that extra layer of privacy.
Choosing Between Bitcoin and Monero for Your Next Crypto Investment
Both cryptos have pros and cons, and one may be better for a crypto trader than the other. Be sure to explore both sides of “the coin,” so to speak, before choosing between Bitcoin and Monero.
