Written by Nic Turnbull & Harry Satoshi
Monero is often hailed as the ‘champion of privacy in the world of cryptocurrency’. It is renowned for its strong emphasis on anonymity, security, and untraceability, making it a top choice for kiwis seeking financial privacy and confidentiality in their transactions.
This comprehensive guide will equip you with all the Monero basics, exploring its history and defining features, such as its use of the stealth addresses and ring signatures.
What is Monero (XMR) in NZ?
Monero is a cryptocurrency that prides itself on offering robust security, strong privacy protections, and complete transaction anonymity. It leverages advanced cryptographic techniques to ensure that every transaction conducted with Monero remains untraceable.
Created by a group of anonymous developers, Monero aimed to address the limitations of Bitcoin, particularly in terms of transaction privacy. It offers enhanced privacy features, including ring signatures, stealth addresses, and confidential transactions, which make it difficult to trace and link transactions to specific individuals such as darknet users.
Like Bitcoin and other POW tokens, Monero also utilizes a proof-of-work (POW) consensus algorithm, which involves miners verifying and adding transactions to the blockchain.
In the crypto revolution, from a regulatory point of view, if Bitcoin is the axe, Monero is the blade. Monero – behind Bitcoin and Ethereum, has the third-largest community of developers in the crypto space, and is one of the most underestimated coins in the world.
History of Monero
Originally launched in 2014, Monero was known as “BitMonero”, a name that combined “bit”, as a reference to Bitcoin, with “Monero”, which is the Esperanto word for coin.
Interesting fact: 5 days later, the ‘bit’ was dropped in favor of its current name.
One of the key moments in Monero’s history was how it experienced significant growth in 2016 primarily driven by its adoption on darknet markets, where users utilized the anonymous cryptocurrency for buying and selling illicit goods like drugs and firearms.
However, this led to concerns over its use on darknet markets, and XMR was subsequently delisted from several crypto exchanges in 2020 due to regulatory compliance issues.
Today, it is difficult to acquire Monero on exchanges such as Easy Crypto NZ without having to prove your source of funds, due to regulatory pressure from the NZ government.
Despite these challenges, Monero has continued to evolve and improve. In 2017, it implemented a hard fork to increase the maximum ring size From 5 to 7, making it more secure. Unlike Bitcoin, a public blockchain, it is impossible to view transaction records.
Another significant moment in Monero’s history was the RandomX mining algorithm update in 2019, which discouraged the use of ASIC miners to mine Monero, making the Monero network more decentralized, egalitarian and accessible to the average miner.
The United States Internal Revenue Service also once offered a bounty of up to $625,000 USD to anyone who could crack Monero’s code, after failing to do so themselves.
How does Monero Work in NZ?
Monero's Blockchain
The Monero blockchain is powered by an open-source, proof-of-work (PoW) consensus algorithm, similar to Bitcoin – but instead with the addition of privacy focused features.
However, the downside to this lack of transparency is that it is impossible to know exactly how much Monero is out there in circulation, whereas with Bitcoin we know it’s 21m BTC.
Mining Monero
Monero operates exclusively on the Proof of Work (PoW) consensus mechanism.
Monero utilizes the RandomX algorithm which can be effectively mined on billions of devices, including modern x86 CPUs. It’s worth noting that Monero has also introduced a feature called “smart mining,” allowing users to mine Monero on their computers’ CPUs.
This approach aims to decentralize mining and move away from the centralized mining farms, aligning with Satoshi Nakamoto’s original vision of a genuine peer-to-peer currency.
Monero's Stealth Addresses
The use of stealth addresses in XMR ensures the privacy of both the sender and receiver by making it hard for any third party to determine the destination address of a transaction.
This anonymity of the receiver is guaranteed by the sender, which is automatically created.
A stealth address is a unique address generated for each transaction on behalf of the recipient, which ensures the privacy and anonymity of both the sender and receiver.
Even though the recipient can share their wallet address publicly, all incoming transactions will be automatically forwarded to a distinct stealth address on the Monero blockchain.
Monero's Ring Signature
Unlike many other blockchains such as Bitcoin and Ethereum that use EDSA signatures, Monero utilizes a more intricate digital signature scheme called ‘ring signatures’.
These signatures are composed of the public keys of several individuals, including one authentic signature and several other signatures from Monero users, known as ‘mixins’.
By utilizing ring signatures, an XMR transaction or statement signed with them can prove that at least one member of the group provided a private key for the digital signature, while keeping the specific individual who provided the digital signature indistinguishable.
To learn more about Monero Ring Signitures, see the official Monero guide here.
Monero's Keys
Monero employs a distinct key system that sets it apart from other cryptocurrencies.
Monero’s Keys: public view key, private view key, public spend key, and private spend key.
By utilizing public view keys, users can generate a unique stealth public address for each transaction. Private view keys are used to scan the Monero blockchain and confirm the receipt of funds. On the other hand, public spend keys are employed to verify transaction signatures, while private spend keys are used to create outgoing transactions.
This comprehensive key system ensures the security and privacy of transactions.
Monero Challenges
Monero, as a privacy-focused cryptocurrency, faces a unique set of challenges in it’s pursuit of providing secure and anonymous transactions to its users such as.
Public Perception: Despite legitimate use cases for privacy, Monero’s privacy features have also been associated with illicit activities on the web. This negative perception can create barriers to adoption and acceptance among mainstream users and businesses.
Law Enforcement: Monero’s privacy features and strong anonymity pose challenges for law enforcement agencies. They are concerned that the privacy provided by Monero could potentially enable money laundering, tax evasion, and other illegal activities.
Despite challenges, the Monero community continues to work on improving the privacy, scalability, and usability of the network. Through ongoing development and education, Monero aims to overcome obstacles and provide a secure and private cryptocurrency.
At Cryptocurrency NZ, we believe Monero is a righteous element of the crypto space, considering the conditions that many hundreds of millions of global citizens live under totalitarian regimes. With Monero, they can now transact safely, privately, and ensure financial freedom and security for themselves- where they would otherwise be restricted.
How to Store Monero in NZ
There are many ways to store XMR but the one that takes the crown is Monero GUI Wallet.
This crypto wallet is a user-friendly software application that allows you to manage and safeguard your Monero funds. By following a few simple steps, you can set up your wallet, synchronize with the Monero network, and conveniently store, send, and receive Monero.
Best Monero Wallets in NZ
Best Monero wallet for Simplicity and Privacy
Purchase Cost: Free
Cloud Storage: No
Cold Storage: Yes
Monero GUI Wallet
Cryptocurrency NZ has selected the Monero GUI Wallet as our preferred cryptocurrency management solution due to its alignment with our commitment to privacy, security, and user-friendly accessibility. This wallet empowers our community by providing a robust interface that simplifies the management of Monero (XMR) while preserving the essential principles of decentralized finance.
Pros of Monero GUI Wallet
✔️ User-Friendly Interface: The graphical interface makes it easy for users, even those unfamiliar with command-line interfaces, to manage their Monero coins.
✔️ Privacy Emphasis: Monero is renowned for its strong privacy features. The GUI Wallet upholds this by incorporating stealth addresses and ring signatures, enhancing the confidentiality of transactions.
✔️ Control over Private Keys: Users retain full control over their private keys, aligning with the core principles of self-custody and decentralization.
✔️ Transaction History: The wallet provides a detailed transaction history, allowing users to track their incoming and outgoing transactions.
✔️ Address Management: Users can easily generate new Monero addresses for enhanced privacy and organization.
Cons Of Monero GUI Wallet
❌ Synchronization Time: The wallet requires synchronization with the Monero blockchain, which might take time, especially for new users or those with slow internet connections.
❌ Resource Intensive: Synchronization and certain operations may consume significant computer resources, potentially impacting system performance.
❌ Limited to Monero: The Monero GUI Wallet is specific to managing Monero (XMR) coins and doesn’t support other cryptocurrencies.
❌ Initial Setup Complexity: While the interface is user-friendly, new users might find the initial setup process slightly complex due to factors like synchronization and backup procedures.
❌ Network Dependency: The wallet relies on connecting to the Monero network through the Monero daemon, which could result in issues if the network is unstable or inaccessible.
The Monero GUI Wallet stands as a pivotal solution in the realm of cryptocurrency management, embodying both practical functionality and steadfast dedication to privacy. Designed to provide users with an accessible and intuitive platform, the wallet boasts a graphical interface that simplifies interactions with the blockchain.
By choosing this wallet, users gain direct control over their private keys and funds, aligning with the ethos of self-custody and financial autonomy.
Best Monero Wallet for security
Purchase Cost: $219
Cloud Storage: No
Cold Storage: Yes
Trezor Model T
At Cryptocurrency NZ, we endorse the Model T as our preferred hardware wallet for several reasons, with security being at the forefront. The Model T offers robust security features, including offline storage of private keys and the availability of a physical security key, which provides an extra layer of protection against threats.
Pros of Trezor Model T:
✔️ Versatile Crypto Support: Trezor stands out for its compatibility with a array of currencies, enabling users to store multiple assets in one wallet.
✔️ Available Touch Screen: The presence of a touch screen on certain models of Trezor enhances user interaction and navigation. This feature contributes to a more intuitive and user-friendly experience.
✔️ Highly Secure: Trezor is renowned for its robust security measures. By storing private keys offline in the hardware wallet, it provides optimal protection against online threats such as phishing attacks and malware.
Cons of Trezor Model T:
❌ Security key exclusive to Model T: While the Trezor Model T offers the added security of a physical security key, other Trezor models lack this feature.
❌ Relatively High Cost: Compared to some software wallets, Trezor hardware wallets are relatively more expensive. The investment in hardware security might deter budget-conscious users or those with smaller crypto holdings.
❌ Not Beginner-Friendly: Trezor’s advanced security features and configuration options may overwhelm beginners new to crypto. The setup process to operate the hardware wallet effectively may require some technical knowledge.
The Trezor Model T Wallet is a cutting-edge hardware wallet designed to provide top-notch security for managing cryptocurrency assets. With its sleek design and user-friendly touch screen, the Model T stands out as a versatile solution.
One of its distinguishing features is the availability of a security key, which further enhances the protection of your private keys and sensitive information. This hardware-based security approach significantly reduces the risk of unauthorized access. For New Zealanders seeking a secure and efficient way to safeguard their digital assets, such as their Bitcoin the Trezor Model T Wallet is an excellent choice.
To learn more about the features and benefits of Trezor Wallet, we recommend checking out our comprehensive guide, “What is Trezor Hardware Wallet NZ.“
Monero Communities in NZ
New Zealand boasts a thriving community of Monero and crypto enthusiasts, many of whom gather on popular social platforms like Facebook, Telegram, Reddit and Discord.
These online communities are an excellent source of information and ideas for locals.
Check out our comprehensive list of Monero and Crypto communities in New Zealand:
- NZ P2P Crypto Marketplace – (NZ’s Largest Cryptocurrency P2P marketplace)
- Cryptocurrency NZ Facebook Group – (Highly recommend)
- Cryptocurrency NZ Monthly Meetups – (Last Wednesday of every month)
- NZ Bitcoin / Crypto Miners Facebook Group
- Cryptocurrency NZ Discord Group
- r/NZBitcoin – (New Zealand’s Bitcoin and Cryptocurrency Reddit group)
Have a community for us to list? Please reach out to us!
Is Monero a Good Investment in NZ?
At Cryptocurrency NZ we believe Monero can be an attractive proposition due to its unique use cases and strong fundamentals. Monero is renowned for its focus on privacy and anonymity, making it an appealing choice for individuals who value financial secrecy.
However, Monero isn’t traditionally known as an investment coin, but rather a utility coin.
If you look at Monero’s price history, you can see that it reached it’s ATH back in 2018, despite the price mania of 2021 – where most other coins like Bitcoin secured new ATHs.
This indicates that Monero is less reactive to speculation than other coins, likely due it’s userbase using it for genuine transactional reasons as opposed to speculative investing.
Monero’s total supply is also unknown, making it more difficult for the free market to accurately price it compared to it’s total supply. However with that said, Monero as the world’s most famous and leading privacy coin will likely be here in the years to come – enticing investors to take a long term punt on the increased adoption of privacy coins.
The cat’s out of the bag with privacy coins – it’s likely their day in the spotlight will come.
