Monero (XMR) Hash Rate up 190% after the RandomX but All Red in Price Land

Privacy-focused cryptocurrency punishes the ASIC miners with RandomX network upgrade but this might have a limited time span.

Most recently, the Monero network successfully upgraded to a new mining algorithm aiming to be ASIC-resistant, RandomX.

This upgrade led to a surge of 190% in the hash rate of the Monero network. From 297 MH/s on Nov. 29, the day before the upgrade to 862 MH/s on Dec. 4. We are currently at just below 800 MH/s.

Source: Bitinfocharts

However, price-wise there isn’t much movement.

XMR is trading at $54, up about 1% in the past 24-hours, as per Coincodex. However, in the past seven days, it has been down 1.56% and 14.40% in the past month.

In the BTC market, XMR is down by 46.57% in the past 1 year. It is also down 91% from its all-time high of $593.

Punishing the ASIC Miners with RandomX

This proof-of-work algorithm uses random code execution along with memory-focused techniques to be resistant to application-specific integrated circuits (ASIC). ASIC is an integrated circuit chip customized for professional mining operational rather than general-purpose use.

Monero has been fighting against ASICs for a long time as the team believes these machines have a centralization effect on the network as only a few companies are able to manufacture them.

The upgrade as such is optimized for general-purpose central processing units (CPU) to make the network more decentralized and making it more difficult for those using graphic processing units (GPU) to mine XMR.

A Limited Life Span

According to Bran Cohen, who is known for writing the peer-to-peer BitTorrent protocol, Monero’s efforts to be ASIC resistant is a bad idea.

“ASIC resistance just creates more centralization around manufacture when it inevitably fails,” Cohen said.

The second-largest cryptocurrency Ethereum settled on its ASIC-resistant PoW algorithm Ethash in 2015 which its founder Vitalik Buterin said has been remarkably successful at resisting the ASICs.

However, according to him it also has its downsides in the way that they make 51% attacker cheaper and further believes these algorithms to have a limited lifespan.

Getting Delisted

Amidst this, another cryptocurrency exchange, Estonia-based BitBay announced that it is no longer supporting Monero on its platform. All users are asked to withdraw their XMR by May 20, 2020.

The reason behind delisting the coin was its privacy feature — Monero uses ring signatures to obfuscate the identity of individuals.

“The decision was made to block the possibility of money laundering and inflow from external networks,” the exchange said explaining as a licensed exchange they need to comply with the market standards and regulations.

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AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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