The coming few weeks will be interesting for Monero (XMR). That’s because there is an upcoming hard fork to the Monero (XMR) network that is scheduled for October 18th. If previous hard forks are anything to go by, then Monero (XMR) could see a huge surge in price as D-Day approaches. However, unlike network forks that create new networks, the Monero (XMR) hard fork is only meant to improve the capabilities of the network. Here are some of the upgrades that will be made to the Monero network.
One of the improvements that this upgrade brings to Monero is to cut on transaction fees. This will be done by reducing transaction sizes, by introducing a new form of range proofs called bulletproofs. By cutting on transaction fees, Monero (XMR) will be more attractive to individuals looking to send money privately, hence make it more competitive. This will increase its uptake, and as a consequence drive up its value in the market. In essence, after the fork, Monero has a good chance of value growth going into the future.
The second improvement that Monero (XMR) will be making with this upgrade, is an improvement to its proof-of –work algorithm to ensure that it remains ASIC resistant. By maintaining ASIC resistance, Monero (XMR) ensures that the network remains fully decentralized, and will never be controlled by a few mining pools. Since this is one of the key strengths to Monero (XMR), it then follows that Monero’s value in the market will continue to rise, since it will draw in more users after this upgrade.
The third upgrade entails increasing the minimum ring size to 11 (mixin 10). Monero pool operators will need to make sure that payouts use this ring size. Failure to do this will have them get rejected by the network. This change is important for several reasons. First, the number of people using the non-default ring size is very low. On top of that, using non-default ring-sizes decrease the level of privacy in the network, among other issues such as complicated research when using non-default ring-sizes. In essence, the upgrade to the ring-size will make Monero (XMR) more private and more efficient. Since privacy is Monero (XMR)’s key selling point, it then follows that its value will rise significantly over time after this upgrade.
Overall, Monero (XMR) is slowly cementing its position as the strongest and most reliable privacy coin in the market. This will ultimately see Monero (XMR) eat into the market share of other privacy coins. As this happens, its value in the market will soar. It will gain value not just from small time users looking to experiment with privacy, but also big players looking to hide wealth, from the public. Trillions of dollars are held in off-shore destinations and Monero (XMR) could take over this market. It could take over because it is extremely private, and also easily accessible to anyone looking to shield their wealth. This could see it trade at thousands of dollars a coin in the long-run.