AltcoinCryptocurrencyMonero (XMR)

Monero’s Attempt to press ASIC-Mining and its effect on XMR Price Value

Monero decides to replace the algorithm on the network from CryptoNight to Random X. The main reason behind the shifting from one algorithm to another is to resist ASIC mining. By pressing ASIC mining, the company wanted to give free space to CPUs and GPUs mining.

ASIC-Resistance Algorithm

The Monera network has adopted many strategies to avoid malware and any centralization effect on the ecosystem. From March, the hash rate of the coin was going to surged which urged the miners to adopt ASIC machines. As these machines are more powerful than simple CPUs and GPUs, ASIC miners simply hit out these simple ones out of the fields. So, the control of mining to the few hands creates an impression of decentralization.

The action was taken against ASIC-Disabling forks when the community of Monero showed an aggressive attitude towards these highly operated machines. They don’t want to hand over the mining power to a few ones.

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The currently operating algorithm called CryptoNight updated after every six months to solve issue and problems, especially about ASIC forks disabling. But this time, the company has a different vision as they are going to launch a new algorithmic system which is called RandomX.

Monero Price Analysis

However, the attempts to stop such mining had a bad effect on the price value as the value slumped by a significant ratio. Both 1-month data and 3-month data revealed the fact that the price went down due to such type of resistive attempts.

Currently, the price value is standing at $50 and one-day performance seems fair but not good. However, the trend line is hooking below the 100-day moving average. The next resistance level is standing at $51 but it is sure that coin will cross the hedge and make some green moves.

The new Algorithm ‘Random X’ is going to commence for users on Nov.30 and will have an important influence on the price as well as for the mining community.

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Leah Hutton (Luxembourg)

Leah Hutton has recently joined Tokenhell team as a freelance writer. She has comprehensive knowledge of blockchain and various cryptocurrencies.

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