Why you should invest in Privacy Coin? Why there has always been a demand for them?

Which Crypto is called a Privacy Coin?

A privacy coin or anonymity-enhanced coin (AEC) is untraceable on the blockchain and protects the user’s privacy and anonymity.

We often hear that Bitcoin and other cryptos are anonymous, but in fact, they are only pseudonymous.

Privacy coin, cryptos that can not be tracked or traced, has always been a polarizing issue in the crypto industry.

There has always been a demand for them because some people like to keep their online identities private and don’t want their crypto transactions made available for all to see.

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How does Privacy Coin work? 

For cryptocurrencies operating on public blockchains, any recorded transactions will show the sender, the receiver, and the amount exchanged.

The two main privacy coins on the market, Zcash, and Monero, obscure this information through different methods.

Zcash

Zcash offers private and transparent transactions. Users can choose between a t-address, which operates like a non-private cryptocurrency address, or a z-address, which will conceal the identity of the seller.

These z-addresses operate on zero-knowledge proofs, which validate that the transaction occurred for both sellers and buyers without revealing any information about the transactions.

So in a transaction between two z-addresses, you can identify that a transaction occurred at a certain time on the blockchain, but you don’t have any information on who participated in the transaction and how much money was involved.  

Monero

Monero has several features that, combined, make it very difficult to identify any transaction information on the blockchain.

To start, Monero uses stealth addresses, also known as one-time public keys, which dissociate the two accounts participating in a Monero transaction from outside viewers of the blockchain.

At the same time, Monero uses ring signatures, which further hide the identity of the sender by mixing their identity with decoy identities. In 2017, Monero implemented RingCT, which obscures transaction amounts.

Why do some people prefer to Invest in a Privacy Coin?

Some people see the financial need and the market need for privacy. They see an awakening populace where people start to realize the need for personal privacy.

And they want to get it on the ground floor and use that as an investment vehicle. There will be a lot of money to be made behind legitimate and useful privacy-preserving services and cryptocurrencies.

Other people come at it from the perspective of “I need a currency that can protect the financial privacy that can allow me to transact with or without government approval or oversight”. Something that essentially will allow them to be their own person.

I know a lot of people reading this will likely come at it from the perspective of a Western mindset of, “Hey, I’m in America, I don’t really have any worry about it. I don’t care that the IRS monitors my bank transactions.”

But people who have either been in authoritarian regimes or have been in countries that have quickly slid that way.

Basically, they’ve realized that you need access to something that allows you to continue to transact if the government changes and wants to crack down on something.

If access to financial privacy is stripped away, all other human rights really evaporate quickly.

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Why should You use it?

I want to be able to choose what level of information to reveal about how I handle my finances. We’ve gotten used to this current paradigm where we have no control over that.

Generally, credit card companies or banks see everything we do financially and often sell that data to other companies to build profiles on us to sell that to other companies.

Our data is just completely out of our hands. Privacy-preserving cryptocurrencies, specifically Monero, give you control over who knows what about how you’re spending your money.

Everyone, even if they don’t realize it, needs the ability to control who knows what about their spending, but you also have more hardcore cases. A battered woman may need to be able to escape an abusive husband or boyfriend.

Then there are the cases where there are governments that are stripping away human rights, stripping away the freedom of their own populace.

Tools like privacy-preserving cryptocurrencies can be a valuable tools to fight back against that and fight for human rights and human freedom.

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Considering increasing sanctions on crypto, what are the long-term risks of investing in Privacy Coin?

The risks have always been there. Sanctions are normally not [a risk] to worry about from a cryptocurrency investment perspective.

I don’t see OFAC [Office of Foreign Assets Control] sanctioning something like Monero because sanctioning a decentralized protocol is a very different thing than sectioning one specific smart contract on Ethereum.

So I think that’s less of a risk for investors.

What we’ve seen with cryptocurrencies is that governments will use back channels through regulatory bodies and banks to try to pressure exchanges to delist cryptocurrencies.

Because they know that the vast majority of people who come into cryptocurrencies and the vast majority of the liquidity for cryptocurrencies happens on centralized exchanges – Coinbase, Kraken, those kinds of exchanges.

So I think that is probably the larger risk.

Read More https://cryptofreemetaverse.com/bitcoin-ordinals-nft-8-amazing-marketplaces/

So the actions from the government will push people to think more about Privacy Coin and maybe become more interested?

I definitely think so. I mean, I think you can have a situation like the Streisand Effect where something becomes popular because it is banned.

We could see more people than would otherwise ask, “Why does the government want to ban this? Why do they want to prevent people from using a privacy tool in Ethereum?

They’re banning Tornado Cash – what other options do I have within the Ethereum ecosystem outside of it?”

It will really shake many people up to the fact that these tools are here. And we’ll get them thinking, exploring, researching, and learning how these tools can help them.

Lots of people who haven’t thought about privacy on-chain within cryptocurrencies will be woken up by something like this. It’s such a massive change in the policy of OFAC and such a big sweeping sanction that we haven’t really seen before.

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Is it possible for the government to sanction an entire blockchain?

It certainly is. They’re not going to be able to shut down Bitcoin or prevent people from transacting peer-to-peer. The basics of Bitcoin would persist even despite an OFAC sanction of Bitcoin as an entire cryptocurrency.

The issue is that Bitcoin and many other cryptocurrencies do not have strong on-chain privacy.

And because of that, anyone who’s trying to use it in spite of a sanction would struggle. You would be at risk of being very easily detected in a system like Bitcoin or Ethereum.

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More broadly, why do people need privacy?

It really boils down to privacy as a fundamental human right. We’ve never really had to battle this hard for personal privacy before the internet, before digital currencies.

People just had privacy. You didn’t have anyone spying on you, because there wasn’t the technological capacity to do so.

With all of the great things that the age of technology has brought to us, it’s also brought this ability for malicious entities to benefit from surveillance and data collection.

The core of who we are as humans and what makes us unique and individual really comes from the ability to have personal privacy.

The other big reason is really just to bring control of that data back into our hands so that we can decide who has influence over us.

Once we realize the need for personal privacy, we can leverage it to start to take back control of that data and regain some personal autonomy.

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So after this sanction, what do you think is the future of the Privacy Coin?

Again, I’m not advocating for anything malicious or bad being done using those tools, but it’s a sign that they can work and that governments are struggling to actually deal with them technologically.

Because, ultimately, sanctions are not a technological tool. They’re a legal tool that they can try to use to pressure their populace into not using a specific set of technological tools.

The attack on crypto mixers reminds me a lot of the early days of Bitcoin (BTC) , when people were concerned that Bitcoin was being used only for nefarious purposes.

Do you remember the days of the Silk Road and how Bitcoin had a very shady reputation with the government back then?

Today, the U.S. government obviously has reasons to be concerned about “crypto mixers” and the potential for money laundering. Just as it had reasons to be concerned about Bitcoin nearly a decade ago.

Outside of that, I think that it’s a bright future because of all of the advances that we’re seeing in the privacy-preserving cryptocurrency space.

In the face of Impeding regulation, many investors are seeking safety in Privacy Coins

With most tokens seeing positive price action today, there are pockets of the crypto market that are outperforming their peers.

One such space crypto investors have their eye on today is privacy coins.

Monero (XMR 1.32%), Zcash (ZEC 1.91%), and Secret (SCRT) rocketed 15.9%,11.7%, and 16.2% respectively, over the past 24 hours.

Read More https://cryptofreemetaverse.com/stably-usd-bitcoin-networks-brc20/

Privacy Coins – Present Scenario

Privacy coins have been outperformers over the past two trading days. Particularly, as crypto investors price in the effects of impeding crypto regulation.

An executive order was officially signed by President Biden to push various agencies to assess the risks and potential opportunities within the crypto space.

Monero and Zcash and Secret each provide added layers of anonymity for users looking to transact over the blockchain.

This is important to some users, given the rather transparent nature of the crypto sector overall right now.

Many crypto enthusiasts are already aware that crypto transactions are not fully anonymous. Users can pull up the wallet addresses of transacting parties (it’s all public on the blockchain).

With a number of high-profile individuals’ wallets already doxxed on popular blockchain networks.

Read More https://cryptofreemetaverse.com/blockchain-what-are-its-applications/

Top 10 Privacy Coins

Monero (XMR)

Zcash(ZEC)

Decred(DCR)

Oasis Network (ROSE)

Horizen (ZEN)

Secret (SCRT)

Keep Network (KEEP)

iExec(RLC)

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Conclusion

There is little insight into what the specifics of the future regulation will be.

Accordingly, this risk is likely to factor into higher volatility in the near term, as investors continue to reprice these risk assets.

I’m hopeful that a continued push like this will actually even be more pressure on people within the cryptocurrency ecosystem to understand the need for privacy.

And start to build this in as the default and as many applications and cryptocurrencies as possible.

Ultimately, we need access to these things for humanity’s sake for the human right of personal privacy, and for our own autonomy.

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