ADSactly Tech News: Are Privacy Coins the Future of Crypto?
ADSactly Tech News: Are Privacy Coins the Future of Crypto?
A few years ago, not many people had heard about Bitcoin or seemed to have any idea about what it was. I remember hearing about it myself and I even looked into buying it before it had received much attention.
After researching what it was, how to buy it and how to store it I was a bit put off. I mean come on, I was required to keep a long string of code which was essentially a password and ownership key while trusting that this digital store of value would simply exist and remain in the cloud was a bit too much to accept at the time. Big mistake!
In 2017 cryptocurrencies received some major attention in the form of mass media coverage and corporate adoption and although many people may not know this yet but the total market cap grew from under 50 billion to over 500 billion USD in just the scope of a year!
Some are even saying that this may even be the single-greatest year for an asset class that history has ever seen. But what has contributed to the amazing growth of the cryptospace and why have I decided to dedicate this article to exploring a small niche within the larger industry, the importance of privacy cryptocurrencies?
Well in regard to the first part of my question, the rally in virtual currencies can be attributed to two major trends: the adoption of decentralized digital currencies "coins" accepted as a viable store of value and monetary exchange and the overall support of blockchain technology as a new paradigm for money transmittance.
I use some big words here so maybe it would be useful to simplify these thoughts and boil it down a bit more. Basically what I'm saying is that blockchain technology is so appealing because it can be used to create a digital currency that is completely in control of the masses while at the same time eliminating the need for a middleman.
The middleman I'm referring to is an entity like a bank. Many believe banks are the cause of endless wars and suffering and humanity would be much better off without them. This opinion aligns with my own philosophy and is supported by the knowledge I've gained studying modern history.
So now that I've discussed what cryptocurrencies are and why they have gained so much attention in the past few years, it's time to move on to the major focus of this article, privacy coins.
Well, many would argue that all cryptocurrencies should have some degree of privacy. And for the most part cryptocurrencies are designed with security and privacy in mind. For example, the majority of blockchains are decentralized, which means that there no main data center that cybercriminals can break into to hold a cryptocurrency hostage.
The majority of transactions conducted on blockchains are encrypted and they occur almost instantaneously across the globe 24 hours a day, seven days a week.
Now, people should know that when it comes to privacy, not all cryptocurrencies are built equally. Privacy coins have been around for a long time, some of the most famous being Monero and Dash (although I'd argue that Dash isn't very private at all after looking into it a bit more).
There are also several other lesser known privacy coins that I'd like to make people aware of in this article. People are starting to catch on that privacy is going to be very important in this new and emerging futuristic world driven by cryptocurrency transactions. Crypto is for the most part in direct competition with the currencies created by governments around the world.
Recently, a major celebrity in the cryptospace, MGT Investment's CEO John McAfee, the man who founded the company that created McAfee antivirus software in the 1980s and 1990s, has become a major supporter of privacy coins.
The privacy-coin trend takes the idea of bitcoin one step further in the sense that virtual coins can not just be the primary means of buying goods and services, but they also can provide anonymity and privacy in the way they handle transactions.
One of the bigger misconceptions associated with bitcoin is that its transactions are completely anonymous. While it's true that you can transact with bitcoin without having to provide your Social Security number or bank account, there's still data on the digital ledger that could potentially be linked back to you.
For instance, the Internal Revenue Service recently won a court case against cryptocurrency exchange Coinbase requiring it to hand over information on more than 14,300 users who'd exchanged more than $20,000 worth of bitcoin between 2013 and 2015. While the move was made so the IRS could possibly go after capital-gain tax evaders, the bigger theme here is that these transactions aren't as anonymous as they appear.
So, what can be learned from this situation is that Bitcoin is not a private currency and if you are in the business of handling cryptocurrencies, be aware that governments not only have the desire to monitor your activities but they have the ability to follow them to a certain extent.
Privacy coins are the evolution of the movement bitcoin helped create. They are developed to do what Bitcoin does while protecting your financial information from going public.
However, this article would be biased if I didn't also point out that privacy coins also represent a desirable financial instrument for cybercriminals to conduct their nefarious activities. This may be true but privacy-coin advocates are quick to point out that the number of illegitimate users is very small, and the benefits they present to legitimate users are nothing short of incredible.
Now, lets talk about specific privacy coins so you can get a basic understanding of the current playing field. The most popular privacy coin is Monero. Its gained a lot of traction and is currently the 11th-largest cryptocurrency by market cap, at nearly $5 billion.
Monero runs an open-sourced protocol known as CryptoNote, which is its primary source of anonymity. Most cryptocurrencies use an unchanging signature when verifying transactions, whereas Monero's CryptoNote uses ring signatures, which is similar to a joint bank account with multiple signers, but with the actual signer remaining unknown.
Monero is a solid privacy coin with a lot of room to grow in terms of market cap in my opinion. If governments start to crack down on cryptocurrencies, expect a lot of people to run to high ground. Expect them to trade up for Monero.
Another extremely popular privacy coin is Verge. I've known about this coin for quite some time and to be honest, like many others I wish I practiced the ancient art of HODL with this one but enough with the regrets...
Verge is possibly the best-performing cryptocurrency in the entire space. Between Dec. 31, 2016 and Dec. 23, 2017, Verge's coin (XVG) increased in value by more than 1,500,000%! This number still completely shocks and amazes me, doesn't everybody wish they were the lucky guy or gal that put 10,000 USD on this in Dec. of 2016 and simply forgotten about it?
Verge's secret sauce is that it relies on Tor and I2P networks in order to make IP addresses untraceable. Further, its Simple Payment Verification technology ensures transaction settlement in around five seconds, which is far and away better than many of its peers. With a number of secure mobile wallets already being offered, including the Tor Android Wallet, it's clearly a name (and coin) that's making a lot of noise.
I've looked into the technology behind Verge (XVG) and it is nothing short of amazing. Although they have a small development team they really know their stuff! I'd also imagine their development team has grown exponentially with their price so I'd expect this coin to be around for a very long time!
A few other privacy coins that are definitely worthy of mention include Dash, PIVX, Hush, Zcash, and Xios. All of these are worth loading up on as the possibility of government crackdowns on cryptocurrencies is very possible to say the least.
Now it seems prudent to mention the fact that even though the popularity of cryptocurrencies has increased exponentially over the last year along with their prices, it is a new and emerging market that presents a very high level of risk and volatility to investors.
This market faces many threats which include but are not limited to government regulations restricting or even banning cryptocurrencies, market manipulation by media and large corporations and many other threats I've yet to speak of or even imagine.
As a writer with @adsactly I'm in a unique position to earn cryptocurrency as a form of payment for my work which allows me to invest in cryptocurrencies without investing outside money.
Most of my crypto portfolio was from investment made in Steem and SBD that I've earned right here on Steemit blogging about different topics. The thing I love most about this platform is its community. Anybody can be successful here if they work hard enough at it!
We are at the beginning of an amazing new age of digital currencies and we have the ability to mine them right here on Steemit through the creation and publication of quality content!
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Authored by: @techblogger
In-text citations source: Meet the Newest Cryptocurrency Trend: Privacy Coins - The Motley Fool
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I hope the people start to realise how much a government has control over the individual. We used to be in a cash based society, now it's all electronical digits, wich are owned by a bank. And you have to show all your information to a taxation system.
But don't get me wrong. It's not that I am against a tax system. But the Taxation system has gotten out of hand. Tax Authorities figure out at every angle, every aspect of our lives to scoop up a little profit from the individual.
Privacy is a human right in my opion and it should be cherished. I think privacy coins will be very important in the near future, or atleast coins where you can choose to have a privacy option like Dash.
Certain companies should function on a transparent basis. Whereas the individual can transact in a private way. You could be easily exploited or hacked as an individual. Like city halls who use the money of the people living in the area should be fully transparent in their spending. As it is not their money they're spending.
God this comment has gotten out of hand!
Really enjoyed the post have a great day!
Welcome to the matrix. I'd say that people have seen this coming since the 60s and 70s when they saw corporations steadily clawing more and more power. We can argue that taxes are needed to a certain extent to pay for socialized investments. Schools, roads, security and places of relaxation and recreation are all funded through taxes. I do however think that mainstreet gets an unfair shake while the uber wealthy use every loophole in the book to avoid their fair share. Social costs are thrust upon the middle and lower middle class while the rich blame everyone except themselves for the lack of a more fair and equitable society. This article focused on the need for privacy centric tokens to exist because at the end of the day the haves are more concerned with the have-nots staying in their place than actually having more themselves. Crypto represents a huge shift in the possibility of those with less having more and that scares governments and the elite. They want the control, they thrive because of it and if they feel you are gaining more, they simply won't accept it.
Grab a big bag of privacy coins, things are going to heat up in crypto!
exactly ... you are right
i am against the tax system tough. Even if we say there is a decent motivation behind the idea of taxes, economically it is still a waist of money at best. Services from the state can only satisfy subordinate needs in contrary to a free market.
Try to imagine services without taxes. Will be something like in XVII Medieval Europe – you can be murdered for no reason. Just because. That's why tax is important. Also, giving back is a good feeling. And only after that, you will get your lamborghini
https://steemit.com/ripple/@karolynaz/thank-you-ripple-for-my-first-lamborghini-omg-please-share-if-you-like-ripple
I can imagine a lot of good services without taxes, better and cheaper education, medical care, security more self responsibility... If we pay directly for services in a free decentralized market there is competition between service providers where the best service & price will win. i can "give back" without paying taxes even with a better feeling and in aw more efficient manner. paying taxes has nothing to do with being social or solidarity because you are not doing by your own free will but because the state forces you. Getting robbed is no good feeling, perhaps for masochist... You think taxes are not robbery? try and go ahead and don't pay your taxes, the state will kidnap you and put you in prison if you resist the state will use violence as long until you give up or until you are dead. pretty much like in Medieval Europe where people had to pay much taxes to the aristocrats. A major reason for the french revolution or 30 years of farmer wars. While kings and aristocrats lived from the work and productivity of the people, people themselves were starving and dying. The first documentations of demands for human rights in our history were during that period. No offense but your argument is 180 degree opposed to reality. Social peace comes from early trades between humans, where people learned that social cooperation is better than killing and ripping each other of,the state wasn't envolved in that process
An interesting post - when I began reading it I said to myself - "how comes no one developed a TOR based cryptosystem?! Then I read about verge :)
It is really alluring - a coin that is completely private using a technology that has reputation and is battle hardened.
I do have wonders about the criminals using privacy coins. It's really great to have privacy for legitimate reasons but a solution should be found to try to eliminate or at least decrease the amount of criminal actions done with crypto, preferably it should be a decentralized method of some kind. We can't ignore this aspect as we all have collective part in the crypto system.
I would also like to point that TOR is not necessarily fully, totally secured, there were cases that should make us extra careful, read here if you want to dig deeper:
https://www.deepdotweb.com/2017/03/30/tor-browser-fully-anonymous-myth-reality/
Overall - privacy coins are great! We just need to be aware of the moral problems and the risks that still do exist and stay careful even when we use a secret coin.
Thanks for an interesting article! I learned a lot!
well there it is the deponion coin
https://deeponion.org/
I also see great possibility in the privacy coin space. Regulation and restrictions are starting to rear their ugly heads with the goal of either restricting in the name of fear ( Venezuela , South Korea) or clamping down quite possibly to artificially manipulate the market and create opportunities ( China, India ). As the clamps are affixed to the crypto system there will be a major push towards anonymity and decentralized trading platforms ( OX etc. ) to gain back control for the masses. Net neutrality itself might be a harbinger of regulation in the US if it is removed by the FCC. Great article, great insight and fun reading! Keep Steeming!!! Cheers, Alex
God bless you
They could be the future of crypto currencies but privacy coins could twice as likely be the downfall of crypto currencies.
The problem with privacy coins is it's tendency to be used for illegal or criminal activities, I know most people see this as a necessary evil when it comes to crypto currencies.
let's remember if the illegal uses of these coins outweigh the positives then crypto currencies in general will make more enemies
I think they are. A lot of people came to me and said they don't feel comfortable with the public knowledge about them in blockchain,
Yes, but do you really think governments will allow privacy blockchains without harassment? They will do everything in their power to block them, spam them, shut them down, and persecute mercilessly anyone who uses them.
I agree privacy coins will have harder test from government. Anti terrorism sentiment will help push their agenda even more.
Thanks for the post about digital coins.
Completely agree. If there was a class for crypto newbies, this post would be mandatory reading......decentralized + privacy!!!