The Ultimate Monero XMR Frequently Asked Questions List for 2020

  1. What is Monero XMR? What does 'Monero XMR' mean?
  2. How does Monero XMR work?
  3. Who invented Monero XMR? How was Monero XMR created? Who is behind Monero XMR?
  4. What is Monero XMR used for?
  5. Why does Monero XMR have value?
  6. How many Monero XMR coins are there? What is the Monero XMR maximum supply?
  7. What is a Monero XMR transaction? How do Monero XMR transactions work?
  8. Are Monero XMR transactions anonymous? Can Monero XMR be traced?
  9. What is Monero XMR mining? How is Monero XMR mined? How does Monero XMR mining work?
  10. Can Monero XMR be taxed? Are Monero XMR gains taxable? Are Monero XMR transactions taxable?
  11. How does a Monero XMR ATM work? Are Monero XMR ATMs safe? Are Monero XMR ATMs anonymous?
  12. Can Monero XMR scale?
  13. Can Monero XMR be stolen?
  14. Can Monero XMR be hacked?
  15. Where is Monero XMR stored? Where to store Monero XMR?
  16. What is a Monero XMR wallet? How do Monero XMR wallets work?
  17. Who uses Monero XMR? Where is Monero XMR used?
  18. Who accepts Monero XMR? Where is Monero XMR accepted?
  19. Why is Monero XMR the future?
  20. Can Monero XMR crash? Will Monero XMR crash?
  21. Is Monero XMR a good investment?
  22. Where to buy Monero XMR? How to get Monero XMR?
  23. Can I buy Monero XMR without ID? Is there a way to get Monero XMR without SSN?
  24. Can I get Monero XMR without KYC? Is it possible to buy Monero XMR without verification?
  25. Which cryptocurrency to buy? Should I buy Bitcoin or Monero XMR? Monero XMR vs Bitcoin?
  26. Is Monero XMR publicly traded?
  27. Can Monero XMR reach 1000? Can Monero XMR reach 10000? Can Monero XMR reach 100K?
  28. How long is a Monero XMR transaction time?
  29. How many confirmations for a Monero XMR transaction?
  30. How much is a Monero XMR transaction fee? How much does a Monero XMR transaction cost?
  31. What is the Monero XMR blockchain? How does the Monero XMR blockchain work?
  1. What is Monero XMR? What does 'Monero XMR' mean?

  2. Monero XMR is loosely based on the design ideas of Bitcoin, the world's first decentralized cryptocurrency. Cryptocurrency is a medium of exchange backed by cryptography. A decentralized cryptocurrency keeps track of all transactions by all addresses on a peer-to-peer shared record. The main innovation of Bitcoin is the Blockchain, which breaks up the record of transactions into blocks, each one crypographically connected to the previous. Monero XMR adds an obfusicated ledger, stealth addresses and ring signatures for even more privacy. Monero is traded on bitni.com.

  3. How does Monero XMR work?

  4. Blockchain based cryptocurrencies like Monero XMR work by grouping transactions together in data blocks, then linking the blocks cryptographically. The chain of blocks is stored across decentralized network of nodes, and distributed as peer-to-peer shared files. Quantities of Monero XMR are stored at addresses, cryptographic sequences paired with a private key used to spend the amount at the address. In the case of Monero, one-time generated stealth addresses. The user's wallet keeps track of all their addresses and adds up the balance.

  5. Who invented Monero XMR? How was Monero XMR created? Who is behind Monero XMR?

  6. Monero XMR was created by Nicolas van Saberhagen as an attempt to technically improve Bitcoin, by increasing the generation of new blocks to once every 2 minutes instead of 10, and using CryptoNight as the hash function. The first tweak makes transaction times faster. The second makes linking/tracing transactions more difficult. Monero XMR is maintained by Monero Research Labs and the software is open source.

  7. What is Monero XMR used for?

  8. Monero XMR is used for anything money is used for - buying, selling, donations. But Monero XMR can also be used for even more things than fiat currency: A means of accepting donations or facilitating commerce that cannot be shut down by governments or the banking system. Also storing up wealth that cannot be confiscated.

  9. Why does Monero XMR have value?

  10. Monero XMR has more value than Fiat Currency because it's more useful: It's anonymous, decentralized, irreversible, cannot be devalued, cannot be confiscated, can be sent over the internet to anywhere in the world in minutes. Things that are very useful and scarce tend to be valuable. One reason Monero XMR has value because it fulfills all of the requirements of money: Store of Value, Medium of Exchange, Unit of Account.

  11. How many Monero XMR coins are there? What is the Monero XMR maximum supply?

  12. The maximum supply of Monero XMR is limited to 21 million. The reason is halving - the reward for mining is reduced by half every 4 years. 210,000 transaction blocks are processed every 4 year halving cycle. The first block reward to miners was 50 coins per block, after halving they were 25, then 4 years after that 12.5, and the series keeps reducing by half. All the block rewards that will ever be add up to 100, so 210K times that is 21 million.

  13. What is a Monero XMR transaction? How do Monero XMR transactions work?

  14. A Monero XMR transaction is a transfer of value from one address to another. The transaction spends the outputs of previous transactions as it's input. The entire value of an output is spent, so any remainder may be sent back to the sending address - this is called the "change". A transaction is created by a user on their Monero XMR client software, then broadcast out to all the other nodes and becomes part of the Blockchain.

  15. Are Monero XMR transactions anonymous? Can Monero XMR be traced?

  16. The blockchain is a public record of all transactions by all addresses. Monero XMR is specifically designed to be extremely difficult to link the history of transactions. An address is just a number - it doesn't reveal anything about the identity of the one using it, like a street address can. As long as this number is never linked to an human identity, the Monero XMR user is safe. There is no way to "trace" a Monero XMR address to the person using it - unless they leave clues connecting their Monero XMR address to their physical identity. bitni.com has maximum anonymity - we don't ask for personal details.

  17. What is Monero XMR mining? How is Monero XMR mined? How does Monero XMR mining work?

  18. Monero XMR mining is the computational process of adding new blocks to the blockchain. New transactions are grouped together in a block. New blocks must cryptographically connect to previous blocks with a proof-of-work hash function. Mining hardware is designed to the hashing function as quickly as possible. Miners are paid a small transaction fee for including new transactions in blocks. Mining also creates new Monero XMR coins, which go to the miners.

  19. Can Monero XMR be taxed? Are Monero XMR gains taxable? Are Monero XMR transactions taxable?

  20. Monero XMR was not designed to be taxed. If no one reports their Monero XMR gains, there is no way an authoritarian regime can know who gained what. However, centralized exchanges with accounts and IDs do report their user's Monero XMR balance to tax authorities. If you want privacy from authoritarian regimes, you need an accountless exchange that doesn't ask for your ID - bitni.com is the best exchange in this regard.

  21. How does a Monero XMR ATM work? Are Monero XMR ATMs safe? Are Monero XMR ATMs anonymous?

  22. Monero XMR ATMs allow a customer to buy Monero XMR by inserting physical cash, like a vending machine, or send Monero XMR to receive physical cash. (The former are called "1 way" ATMs and the latter are called "2 way".) If the Monero XMR ATM is from a trusted manufacturer and operator, it should be safe to use. Different Monero XMR ATMs have differing AML/KYC requirements.

  23. Can Monero XMR scale?

  24. Monero XMR has scaled to handle millions of transactions per month. Monero XMR is software, and it can evolve to scale - the code can be modified with better algorithms and the network then upgrades to the more advanced version. Monero XMR was modified from Bitcoin as an attempt to help to solve scaling issues, by creating a new block every 2.5 minutes instead of 10, which allows transactions to be processed faster.

  25. Can Monero XMR be stolen?

  26. Anyone who knows the private key can move the coins from an address. If the private key is not known, it's not possible to spend the coins at an address. Monero XMR stored in the wallets of a centralized exchange can be stolen - it happens all the time. At a Non-custodial exchange like bitni.com, you are in charge of your wallet at all times.

  27. Can Monero XMR be hacked?

  28. If the Monero XMR network could be hacked, it would have already happened. The blockchain is decentralized across thousands of independent nodes - the more nodes on the network, the higher the security. If any one node is compromised, it will not compromise the others. However, centralized Monero XMR exchanges are hacked all the time! That's why you need a non-custodial exchange like bitni.com.

  29. Where is Monero XMR stored? Where to store Monero XMR?

  30. The data of all Monero XMR transactions is stored in a public ledger (blockchain) distributed as peer-to-peer shared files. Each node has a complete copy of all transactions ever made - the blockchain. So the blockchain is stored in the cloud - not on a centralized server, but on thousands of independent nodes. Each user's Monero XMR balance is also kept track of in their wallet.

  31. What is a Monero XMR wallet? How do Monero XMR wallets work?

  32. A Monero XMR wallet stores all of the user's Monero XMR addresses. The sum value of all of the addresses in a wallet is automatically added up - this is the total balance of a wallet. Centralized exchanges store the user's wallet, which is risky. Non-custodial exchanges like bitni.com do NOT store user's wallets, which is much safer.

  33. Who uses Monero XMR? Where is Monero XMR used?

  34. Millions of people everywhere in the world use Monero XMR for all the same things as any other money is used for - buying, selling, and donations - and the number of users is growing rapidly. Anyone needing to transfer wealth internationally, especially outside the grasp of authoritarian regimes, for ridiculously low cost, will find Monero XMR useful if they are not already using it. Monero XMR is also used as an investment and a hedge against inflation.

  35. Who accepts Monero XMR? Where is Monero XMR accepted?

  36. Many merchants, especially online, accept cryptocurrencies as payment. Charities like Wikipedia accept donations in crypto. Web Hosts and Domain registrars often accept crypto. Large brick and mortar stores are starting to accept crypto payment. Some local restaurants are also coming on board. bitni.com accepts Monero XMR to convert to other currencies, of course.

  37. Why is Monero XMR the future?

  38. The reason why a cryptocurrency is the future can be summed up in 3 words: Because it's better. Monero XMR is a huge improvement over fiat currency. It is also an improvement over precious metals - they can't be wired over the internet. If central banks continue destroying the value of fiat currencies, cryptocurrencies will become even more important to the future of money.

  39. Can Monero XMR crash? Will Monero XMR crash?

  40. If Monero XMR were going to crash to zero, it would have probably done it already. There have been wild price swings - because it's new and there's a lot of speculation, like the internet when it first came out. But there are wild price swings with other commodities like oil. Monero XMR's low after it's all-time high of several hundred dollars is still scores of dollars. For Monero XMR to crash to $0, demand would need to be zero or supply would need to be infinite - a highly unlikely scenerio.

  41. Is Monero XMR a good investment?

  42. The Original Bitcoin has gone from pennies to thousands and thousands of dollars in less than a decade, utterly blown away the stock market, even gold and other precious metals, and far outperformed pretty much any other investment. While Monero XMR has not reached Bitcoin's high, it has performed relatively well, going from pennies to several hundred dollars at it's high - a pretty good investment.

  43. Where to buy Monero XMR? How to get Monero XMR?

  44. Exchanges are where Monero XMR is bought and sold, however there are several types: Centralized Exchanges store the user's coins like a bank and require ID. Decentralized Exchanges (DEX) facilitate peer-to-peer buying and selling between users - and these can be done locally in-person or online. Non-Custodial exchanges like bitni.com are a quick and easy way of swapping cryptocurrencies without signing up.

  45. Can I buy Monero XMR without ID? Is there a way to get Monero XMR without SSN?

  46. Many Centralized exchanges have rigorous requirements for identification, such as uploading a scan of passport or other government documents. Decentralized exchanges usually have less stringent requirements for identification, especially if the transaction is in-person. Non-custodial exchange bitni.com does not require identification for crypto-to-crypto swaps. If you want Monero XMR without SSN, you've come to the right place.

  47. Can I get Monero XMR without KYC? Is it possible to buy Monero XMR without verification?

  48. KYC stands for Know Your Customer. Many regimes have become increasingly authoritarian towards cryptocurrency and seek to crack down on anonymous trading, by requiring the customer to upload documents proving their identity. Many exchanges have caved in to the pressure and now have KYC policies. Centralized exchanges almost always have KYC, some Decentralized exchanges do as well. bitni.com does not require KYC for crypto-to-crypto swaps.

  49. Which cryptocurrency to buy? Should I buy Bitcoin or Monero XMR? Monero XMR vs Bitcoin?

  50. In many ways, Monero XMR is technically superior to Bitcoin. It has much faster transaction times. It is much harder to link/trace transactions. However, Monero XMR doesn't have the massive publicity that Bitcoin has (not all of Bitcoin's publicity is good, but apparently there's no such thing as bad publicity). And that's why Bitcoin is priced much higher. Many more people know about Bitcoin than Monero XMR.

  51. Is Monero XMR publicly traded?

  52. Most Monero XMR trading is done by buying and selling coins directly by individual investors. However, there are cryptocurrency funds listed on stock markets. A Cryptocurrency Exchange Traded Fund (ETF) holds assets in single cryptocurrencies or a basket of them. It may be more convenient to buy into one basket fund instead of manually managing dozens of different cryptos and their respective wallets. In the case of Monero XMR, it is probable some Cryptocurrency ETFs are holding it.

  53. Can Monero XMR reach 1000? Can Monero XMR reach 10000? Can Monero XMR reach 100K?

  54. Thousands, or tens of thousands, or even hundreds of thousands for a Monero coin may seem speculative, but Monero's high is already several hundred dollars. Monero started out at practically nothing and rose in a parabolic curve to it's high hundreds of times higher than the starting price. $1000 is only a little more than two times higher than the all time high. If the long term trend continues, Monero could reach new highs orders of magnitude greater.

  55. How long is a Monero XMR transaction time?

  56. A new block on the Monero blockchain is added every 2 minutes. The number of transactions in each block can grow depending on network demand. Transactions paying higher fees are given priority over those paying lower fees, which must sometimes wait to be included in future blocks instead of the current one. A Monero transaction time can be as short as the generation of one block in 2 minutes. However, 10-15 levels of blocks is needed for irreversibility, thus the safe transaction time is 20-30 minutes.

  57. How many confirmations for a Monero XMR transaction?

  58. A Monero transaction can be tentatively completed in as little as 1 confirmation in 2 minutes. However, the latest blocks in the blockchain are changeable until more blocks are added after them. For irreversibility, 10-15 levels of blocks and thus 10-15 confirmations are needed. The latest block in the process of being added to the blockchain is changeable. Not till several more blocks have been added after it is that part of the blockchain considered immutable.

  59. How much is an Monero XMR transaction fee? How much does a Monero XMR transaction cost?

  60. A Monero transaction fee is the cost of having transaction data included in blocks added to the blockchain permanent record, which fluctuates under market supply and demand. In the past the fees have been as high as tens of dollars, the current fees are pennies. Lots of factors affect Monero transaction fees, such as the cost of electricity, the hardware capacity and competition between miners, the number of simultaneous transactions competing to be included in a block.

  61. What is the Monero XMR blockchain? How does the Monero XMR blockchain work?

  62. Monero transactions are records of balances moved amongst addresses. Blocks are groups of Monero transactions for the purpose of easier verification and sharing accross the network. Block size is 2 times the median of the last 100 blocks. New blocks are generated at a fixed time interval of 2 minutes. Each block is connected to the one chronologically preceeding it by a cryptographic hash. Once a block has been verified, it is distibuted to the other nodes as a peer-to-peer shared file.

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