Why you should invest in Privacy coins

One of the reasons why there is a lot of demand for Bitcoins and other cryptocurrencies is due to the privacy these coins offer. With the use of these cryptocurrencies, there will be no need for the buyer and seller to personally know the other party.

Trust arises because of the technology and the ideology, and this is a very big incentive. After all, it is easier to trust the execution of a contract with lines of code rather than the arbitrariness of people.

It was through the creativeness and ingenuity of man that cryptocurrency is made, so that people can rely on objective standards like the blockchain technology as well as fast confirmation of transactions.

With cryptocurrencies, you can be assured that there will be no counterfeit money and that your cryptocurrency will not be hacked or forcefully taken without your private key or wallet.

Cryptocurrencies: Privacy and Anonymity

However, your privacy is assured but your anonymity is not. How is this so? Let us take an example.

For Bitcoin, people can actually know which public key or wallet the amount comes from. By careful financial investigation and some time spent on gathering information, your public wallet may be traced.

Granted, just knowing your public address will not give other people the ability to get money from your wallet or communicate to you. However, you are not anonymous but pseudonymous, which means that you have enough of an identity to be known in the cryptocurrency world, but not totally known.

With cryptocurrencies, you have what we call strong coin security which means that you can be assured that the cryptocurrency you receive or sent is authentic and valid. All transactions are then recorded in the blockchain (or Tangle if you are using IOTA) and the security of your coin is assured by the whole community.

However, your user anonymity is not as protected as it should be.

With enough time and effort, people can trace the sender and receiver by looking at the blockchain details. Depending on the number of miners and transactions that are processed, determined people can look when the cryptocurrency was mined, who were the senders and receivers, as well as the time the data was entered in the records of the public ledger.

Privacy coins: What are they and how to profit

This need to be safe and secure with the origins of the transactions has led to the making of cryptocurrencies that specialize on providing both privacy and anonymity.

Cryptocurrencies like Bitcoin and Ethereum allows people in the cryptocurrency world to just look at the blockchain and know how much money went into and out of the public wallets. This ability to investigate the movement of currencies made some people nervous.

Since a lot of people would want to keep their financial transactions safe and hidden, they would choose to do transactions with privacy coins like Monero (XMR) or Verge (XVG). With more people using the privacy coins, the higher the price goes since there is more demand for it.

Monero and Verge are the two most well-known privacy coins available today. Specifically, you can make your transactions hidden in Monero through the sue of its own privacy settings. However, please do know that some illegal entities like Torrent Pirating websites use Monero to fund themselves since following the money trail of Monero is next to impossible.

Verge on the other hand has seen explosive growth both in price and adoption. This is largely attributed to John MacAfee, who is the internet mogul behind the Mcafee anti-virus. On the other hand, Verge has a very conspicuous downtrend in price and have been consolidating in a range which is around 50% down from its all-time high.

Privacy coins are the future, but not all privacy coins are equal. There are emerging cryptocurrencies that focuses on privacy like Zcash (ZEC) and Spectrecoin (XSPEC). Please do your own research before you invest.

You may also like...

4 Responses

  1. joe says:

    It is crazy how law enforcement can just track every one of the moves that you make online. If you are involved in a simple transaction with Bitcoin, they can track it and see what you doing.

    • Elizabeth says:

      All agreed Joe. They keep a tabs on everything we do. This is all the more reason why people should consider privacy coins.

  2. Lorenzo says:

    Noobs. Why would you suggest a coin like Monero over Zcash? does it even make sense? I mean there is zero proof required for Zcash…

    • Elizabeth says:

      Well yes, but they rely on the belief that those who created the coin have actually destroyed the coin. This is not always the case unfortunately.

Leave a Reply

Your email address will not be published. Required fields are marked *