Top Reasons for Investing in Cryptocurrencies That Are Privacy Centric
The principle behind Bitcoins and other cryptocurrencies arise from the requirement for decentralization of present monetary system that shifts the control and power usurped by big banks and the government towards the masses.
It is aimed to make the financial system as free and transparent as possible using complex technology of cryptography. This technology is referred to as block chain. Its encryption features permit high degrees of privacy and security.
The growing anonymity and privacy has become a major complaints against cryptocurrencies like Bit coin as it attracts criminal activity. But anonymity is not synonymous with crime. It just means that you are redeeming your rights to have complete control over your privacy. Some cryptocurrencies are ideal medium to exercise privacy.
Bitcoin was once believed to be a digital currency which enabled anonymous transactions online. But this myth has been unravelled. Because of the public blockchain of Bitcoin, all wallet addresses and every transaction completed can be viewed publicly by anyone. Even though such addresses do not contain personal information of user, there are means for exposing the real world identities of wallet owners of Bitcoins.
Bitcoin is thus not suitable for users who desire much privacy of virtual transactions. But there are now many altcoins which cater to this purpose. Here are some top reasons to include cryptocurrencies that are privacy centric to your portfolio of digital assets.
· Crackdown on Bitcoin
The amazing rise in value of Bitcoins has been noted by government agencies and banks. All around the globe, lawmakers are designing legislation that will impose taxation and control the use of cryptocurrencies.
Though there will be no outright ban on Bitcoins, legislation with regard to digital currencies may not be very conducive to cryptocurrencies. Hence, those who want to get around government control may increasingly move a major portion of their holdings of cryptocurrency into anonymous digital currencieslikeBronix.
Bronix is a self-managed fully independent, efficient, stable, transparent and fair investment solution. It uses the basic blockchain technology and peer to peer architecture of network to include income stability and financial security in the current scenario of unstable markets.
· One can be one’s own bank
The ethos of Bitcoin of being one’s own bank is still in currency. With regard to the de-anonymization attempts for Bitcoins, many stakeholders like cyberpunks and libertarians will also move their holdings of digital currency into privacy focused coins, to avoid any one to access their funds. Since these stakeholders are early adopters of Bitcoin, there could be substantial movement of funds converted to privacy coins.
· The case of dark web marketplace
When dark web marketplaces first assumed importance, Bitcoins were utilized as the main currency for conducting transactions. However, because of the rising efforts of govtagencies and law makers to de-anonymize the blockchain of Bitcoin, there is a rising shift towards the usage of anonymous cryptocurrencies to make purchases and sales on the dark web.
According to reports, Bitcoin is still the most popular digital currency for dark web marketplaces. But users are switching to other coins at a rapid pace. One of the main reasons is rise in transaction fees of Bitcoin that have made more costly the purchases and also the rising demand for privacy.
The privacy centred coins, which emerge as the preferred digital currencies in use for the purchases on dark web, could potentially view that positively impacted on prices in the future.
These are a few reasons for the shift to coins with high privacy.