For the last couple of days Monero (XMR) has been pumping hard, from under $100 to over $140. While it is now cooling off, just like the rest of the market, it is still performing better than average. So what could be the reason behind this pump? There are lots of speculation that it could be linked to a recent move of over $1 billion dollars’ worth of bitcoins from an account that has been dormant for years.
The story about these bitcoins emerged a few days ago on reddit. Interestingly, Monero was pumping hard in the same period, leading investors to speculate that whoever owns those bitcoins was exchanging them for XMR due to its privacy features.
If indeed this is the case, then it is good news for Monero (XMR) investors. That’s because it means that people do believe in it as a true privacy coin that is unbreakable. Someone looking to mask a $1 billion transaction has the knowledge and the resources to determine the most secure privacy coins in the market. Therefore, choosing Monero is a heads up for its capabilities, in a privacy coins market that is increasingly getting crowded.
The positive vibes that Monero is getting now could see its value pump even harder in the near future. That’s because it will now attract the attention of more investors who are looking to make private transactions on the blockchain. Such an upsurge in demand could see Monero kill off the rest of the privacy coins, by gaining more market share.
Besides, if indeed it is true that such a large amount of money is moving into Monero, then this amount could sustain the price of this crypto for the next couple of days or even weeks. A one billion dollar pump into XMR is a huge amount and could see it rise to over $200 in coming weeks. It’s a significant amount of money given that volumes have been pretty low in the markets lately.
Beyond speculation and short-term price pumps, Monero (XMR) does stand a good chance to make substantial gains in the future. It has something that most other cryptocurrencies, including bitcoin (BTC) don’t have, and that’s the fact that it is fungible. Simply put, Monero units have no connection to their origin. It doesn’t matter whether a unit of Monero comes from a drug transaction or from the sale of coffee, it has the same value. It’s just like a dollar bill is a dollar bill, irrespective of where it came from. Monero achieves this because it’s private by default, which means that transactions can’t be flagged. Over time, this characteristic will see it gain in value, as more people begin to appreciate the value of privacy in internet transactions.