Here’s Why Monero Is My Favourite Crypto in 2022

Canadian investors may want to avoid Bitcoin and look to a controversial cryptocurrency like Monero instead in the spring of 2022.

| More on:
crypto blockchain

Image source: Getty Images

The cryptocurrency market has largely stalled in 2022. It had been locked in competition with gold and silver as an alternative haven. Unfortunately, it has been unable to attract the desired attention in the face of turbulent conditions so far this year. Today, I want to discuss why Monero (CRYPTO:XMR) is my favourite cryptocurrency to target right now. Let’s jump in.

Here’s why Bitcoin has failed to regain momentum in the first half of 2022

Bitcoin is still the largest digital currency by market cap. It was trading below the US$40,000 mark as of mid-afternoon trading on April 14. This has been a drag for newcomers. We have passed the one-year anniversary of the launch of Purpose Bitcoin ETF (TSX:BTCC.B), the first Bitcoin-focused ETF to launch on the North American market. Its shares have dropped 14% in the year-to-date period.

Crypto has attracted significant mainstream attention since the beginning of 2020. Retail investors have flocked to the world’s top digital currency. Bitcoin has failed to recapture the momentum it realized during its big spikes in the previous year. Moreover, rising interest rates could put even more pressure on this highly speculative space.

What are the reasons to pick up Monero instead?

In the summer of 2021, I’d discussed whether Bitcoin or Monero were the better bet for crypto investors going forward. Monero first launched in the spring of 2014. It was designed to be the gold standard in the crypto space when it came to privacy and the security of transactions. The privacy-enhancing technologies work to hide any addresses trading this crypto as well as address balances, transaction amounts, and transaction histories. The United States Internal Revenue Service (IRS) has even offered a substantial cash reward to those who are able to crack the defences of Monero.

For this reason, Monero has attracted a somewhat shady reputation. Its privacy-enhancing features have made it the crypto of choice for cyber criminals and political extremists. This is an unfortunate side effect of its proficiency in securing its user information. Regular investors who are hungry for a crypto that offers top-flight privacy should look to Monero today.

On the price side, Monero has largely tracked with its top peers in the crypto space. Its price has been mostly flat since May 2021.

Should investors feel good about crypto prospects going forward?

When this year started, I’d discussed what the future of the crypto market looked like in 2022 and beyond. Investors may want to look beyond individual currencies like Monero. Hut 8 Mining (TSX:HUT)(NASDAQ:HUT) is a Toronto-based cryptocurrency mining company. Its shares have plunged 45% in 2022 as of mid-afternoon trading on April 14.

In 2021, Hut 8 delivered record annual revenues of $173 million. Meanwhile, Bitcoin holdings surged 100% to a total of 5,518. Its adjusted EBITDA climbed to $96.5 million compared to a marginal loss in the prior year. This crypto stock last had an RSI of 35, which puts it just outside technically oversold territory.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool owns and recommends Bitcoin.

More on Investing

Simple life style relaxation with Asian working business woman healthy lifestyle take it easy resting in comfort hotel or home living room having free time with peace of mind and self health balance
Investing

2 No-Brainer Stocks to Buy With $5,000

These two stocks could be excellent buys amid this uncertain outlook.

Read more »

IMAGE OF A NOTEBOOK WITH TFSA WRITTEN ON IT
Stocks for Beginners

5 Canadian Stocks to Hold in Your TFSA For Decades

The TFSA is the perfect place to compound wealth over decades. Don't pay any tax on these top five growth…

Read more »

edit Woman calculating figures next to a laptop
Dividend Stocks

Should You Invest in BCE Stock for its Dividend?

BCE stock is not yet out of the woods. But this article could change your perspective about the stock and…

Read more »

sale discount best price
Dividend Stocks

Bargain Hunting for Dividends: 3 High-Yield Stocks Haven’t Been This Cheap in Years

Enbridge (TSX:ENB) stock's key enterprise value multiple reached a new multi-year low recently. BCE remains a high-yield dividend play while…

Read more »

An airplane on a runway
Stocks for Beginners

Where Will Air Canada Stock Be in 3 Years?

Here’s why I wouldn’t be surprised if Air Canada (TSX:AC) stock more than doubles in value in the next few…

Read more »

Lady holding mobile phone and shopping bags
Tech Stocks

The Ultimate Growth Stock to Buy With $1,000 Right Now 

Here's why Shopify (TSX:SHOP) could be the ultimate growth stock long-term investors want to consider at this current point in…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

Cash in Your Pocket: 3 TSX Dividend Stocks That Pay Out Monthly

Bolster your monthly income with these three dividends stocks that act like regular paycheques.

Read more »

clock time
Stocks for Beginners

Is It Too Late to Buy Dollarama Stock?

Dollarama stock (TSX:DOL) is up a whopping 48% in the last year, but growth is slowing for this great low-cost…

Read more »