What comes in your mind when somebody talks about Bitcoin? For most people, it’s anonymity, privacy, and the capability of completing a transaction even in the absence of a footprint. The very first to market was Bitcoin, it holds the highest value of the coin as well as holds the position of a market leader. But that doesn’t mean that there is no competitor. There is a Monero, which is considered a great competitor as well.
Cryptocurrencies as popularly known for giving a prestigious privacy level when it comes to transaction privacy, yet according to the Monero developers, privacy was not sturdy as many people think it is. Considering this downside, they designed an up to date cryptocurrency, the one which will be capable of really protecting privacy. If you want to know more about the differences between Monero and Bitcoin, below is the quick guide for you. Read on!
Privacy
The good thing about any transaction in Bitcoin is that it is never linked to your personal information. However, it is connected to your wallet. Along with a few analyses, it is completely out of the question to uncover someone’s identity by just merely observing time zones, patterns, and some other pointers of data. This could result to a serious issue in various situations.
For instance, you are about to visit a place where higher cases of crime occur and you decided to settle a payment using Bitcoin. Though your personal identity may not be visible to the receiver of the payment, the total hold money on your wallet will be viewed. Thus, if you have a high balance, this could create a risk.
One more situation is when the supplier is being paid through a Bitcoin for a business. The supplier can possibly view the amount of currency that the business has, therefore guess if they are price-conscious, and this could adversely harm your next negotiations. The supplier and its risks can uncover the other types of details regarding the business, which may be quite sensitive. The other suppliers that you have contact with will be visible as well.
Mining Algorithm
Monero and Bitcoin use different algorithm mining. With Monero, Cyrptonight GPU mining is being utilized while with Bitcoin, and the SHA-256 algorithm is being used. This results to a little distinction between them. For instance, the bitcoin algorithm performs a bit faster, unlike custom mining chips popularly known as Application-Specific Integrated Circuits or ASICs. Seemingly, both may look like an advantage, most especially if one is capable of investing for ASIC computer mining, yet it may lead to several issues.
ASIC computers are found to have greater benefits compared to CPU as well as GPU equipment for the reason that there are a number of computing powers. But this becomes no purpose of miners in attempting the usage of other types of computers in the case that ASIC is in use. If there are a huge number of ASIC computers in use, this might pose a miner’s concentration in varied parts of the globe wherein there is a low cost of energy, seeing that these computers consume more power quantities.
