Why anonymous cryptocurrencies are antifragile
First of all I need to explain four things, which are:
- blockchain decision tree
- what really is anonymous cryptocurrency
- proof of crime mechanism
Blockchain decision tree
First you are probably thinking, if you need blockchain at all. In many cases, private database is enough, but my friends came up with very simple distinction. I will not explain this into detail, because that is not what this article is about, but when you think more about this decision tree, you have to agree at some point, that this is true.
Is my activity illegal? –> Yes –> I need blockchain.
Is my activity illegal? –> No –>I do not need blockchain.
I want to warn all, that you will probably need anonymous cryptocurrency not only for buying drugs and guns on darknet marketplaces, but even for buying raw milk in USA. So use of anonymous cryptocurrency is not only exclusive for criminal activity, but also for all illegal activity.
Cryptocurrencies are usually not focused on privacy, f.e. Bitcoin is pseudo-anonymous. This means, that if somebody can prove, that you used a specific address, anybody with that knowledge can track your transactions and even all your funds in Bitcoin network. Mario Dian wrote an excellent article about anonymous cryptocurrencies, which I recommend to read to all. Anonymous cryptocurrency is not only benefit for criminals, but also for people, who do not want to share balance of their wallet with strangers.
Nicolas Taleb wrote in book Antifragile about specifics of word Anti-Fragile. Let me quickly explain it. Fragile things are things, which can be easily broken such as wine glass. Robust things are very hard to destroy, even time can be irrelevant to them, f.e. sword. Every attempt to destroy Anti-fragile thing can make it even more stronger, f.e. nature.
Proof of crime mechanism
You might think, why I am writing about all this stuff. It is because when you connect these dots, you will get the idea, why anonymous cryptocurrencies can not be affected by legislation. If parliament would proclaim them illegal, they would become stronger. Why? Simply because state can not use them afterwards. I explained few weeks ago proof of crime mechanism. State can not use illegal tools or initiate illegal operations to get criminals behind bar. So it can not use illegal anonymous cryptocurrency as well.
State got into law checkmate position. There are only two options 1. State will regulate anonymous cryptocurrencies, which is by design useless 2. State will forbid anonymous cryptocurrencies and will absolutely loose tool to control grey economy. The message of this article is really simple:
“From my perspective, when state completely forbids anonymous cryptocurrencies, it will create safe bay for illegal activity in parallel economy. Voluntary exchange will flourish and agorism will be closer then ever.”