You may be wondering who are the most prominent players among the privacy currencies. Arguably the most popular is Monero, which is currently the 11th largest cryptocurrency by market capitalization, with almost US $ 5 million. Monero's high market limit is a direct response to the unique technology it brings to the table.

As discussed in CoinCentral, Monero runs an open source protocol known as CryptoNote, which is its main source of anonymity. Most cryptocurrencies are invariably used when verifying transactions, while CryptoNote de Monero uses ring signatures, which is similar to a joint bank account with several signatories, but with the actual signer is unknown. The issuer of XMR (Monero currency) generates a unique key, known as a stealth address, and the recipient is the only one who can detect and spend those funds. In other words, the transaction can not be linked to the sender, making it an attractive opportunity for those seeking anonymity and privacy.

Verge, which is possibly the cryptocurrency with the best performance in all space, is another key player. Between December 31, 2016 and December 23, 2017, the currency of Verge (XVG) increased in value by more than 1,500,000%.

Verge's secret sauce is that it depends on Tor and I2P networks to make IP addresses impossible to track. In addition, its Simple Payment Verification technology guarantees the settlement of the transaction in about five seconds, which is much better than many of its peers. With a number of secure mobile wallets already on offer, including Tor Android Wallet, it is clearly a name (and a currency) that is making a lot of noise.

Other thriving privacy currencies include Dash, PIVX, Hush, Zcash and Xios.

Be careful

Despite the recent popularity of cryptocurrencies, it is important that investors understand the ongoing risk associated with investing in a decentralized virtual currency that, in many cases, has not been proven. For example, government regulations may close the advance of any cryptocurrency at any time. South Korea and China, each, are inclined towards the initial offers of currencies (ICO), and China goes a step further by prohibiting the exchanges of national cryptocurrencies. Even anonymous currencies are not exempt from the impacts of government regulation.

I also believe that cryptocurrencies of all forms, including privacy currencies, run the risk of disappointing their investors with respect to the adoption of technology. While some currencies try to be used as a means of bidding, the bulk of cryptocurrencies has to do with the emergence of blockchain technology. If large companies do not immediately implement this technology, which I do not think will happen, could lead to the crypto bubble is deflated in a big way.

While these coins and their tied technology continue to be intriguing, I personally can not justify the valuation that is given to cryptocurrencies at this time.

 
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