While Bitcoin stays surprisingly long, a lot of other cryptocoins happen. March 12 will be a special day for owners of Monero (XMR). Every owner of the cryptocurrency gets 10 MoneroV for every 1 Monero. But what is that actually?
MoneroV is one of many forks. Other examples of popular forks are Bitcoin Cash and Litecoin Cash. Splits that attempt to be upgraded versions of the original coin. But to make such drastic changes, that it leads to a literal division in the blockchain. So a fork. But what are the differences between Monero and MoneroV, what makes this fork so important?
First, there is only a limited amount of MoneroV, unlike Monero. Monero (XMR) is worth $ 300 at the time of writing, a major achievement. But the offer is therefore infinitely large. A great solution, but that promises investors less explosive growth in value. After all, the supply grows with the demand.
MoneroV therefore has a limited, fixed offer. While demand is growing (hopefully), supply remains stable. In other words, the value will shoot up. Hungry investors see a gold mine there. A gold mine that you as a current owner also get free in your possession. At least, if this is not another fork that builds fast hype, then die a silent death.
Fork can scale, but how?
What makes MoneroV so special is how the coin can scale up. Coins such as Monero and Bitcoin suffer from a scalability problem. The transaction costs of Bitcoin have been boosted by the popularity of the cryptocurrency, not to mention how long it takes to complete those transactions. In other words, it hinders the actual practical use of the cryptocoins in an extreme way. While that is something that is essential to succeed in their final goal. From a technological and hypothetical promise to a system actually put into operation.
Unfortunately it is not exactly clear how the fork of Monero evades that problem. The website promises that a special protocol called MimbleWimble will eliminate the scale problems. Exactly how this works, we will unfortunately only discover later this month. However, the promise is already happy. Add to that improved privacy principles and you have a promising currency.
The team behind the cryptocoin will launch a light wallet on June 18th. From then on it will be a lot easier to complete transactions with the new currency. Only that action will push the value of MoneroV up already. But how do you qualify for those free coins? You only need to have Monero in your possession. There is, however, a catch: your coins must be in a wallet that supports the fork. Examples include GetMonero and MyMonero. Does your wallet not support the fork? Then you miss the free money.
Don't cheer too early
Do we all have to cheer now? That is a good question. This situation is very similar to that of Litecoin Cash. A cryptocoin that has been labeled as a scam by the founder of Litecoin. By giving away coins for free, you create a big hype as a developer. Everyone loves free money. Whatever you create with it, however, is a bubble. Is that all that the makers are aiming for, to make money quickly?
Or is this really a currency that will prove itself in the long term? The fact remains that Monero is widely supported and worth $ 300. That surpass, you do not get together with some free money.