Why anonymity in money (either fiat or crypto asset) is important

in bitcoin •  8 months ago  (edited)

In this post I will explain why your bank account is more private then BTC and why anonymity matters. After you read it you will understand that 2 myths regarding anonymity are clearly not true.

Money or cash is a very liquid thing. It means it can be easy moved, transferred BUT also easy lost, stolen or robbed.

Using bank account and fiat/cash you are more or less anonymous to most of society - nobody knows how much you have until you share such information. Some officers in tax department or your bankers might know your account holdings, but for most society it is hidden. Of course if someone wants strongly he can (try to) bribe those guys (risking jail), to know how much you have and abuse that information!

Now lets consider BTC. Is BTC anonymous? When doing transaction on internet with people you never met it is kind of anonymous. But what about doing transaction facet to face?

Why anonymity matters
Now imagine a scenario: you have 1 BTC and while traveling you buy a cop of coffee for 0.0005 BTC. An evil merchant could track your transfers and possibly infer how much you have left (0.9995). For some people 1 BTC might be enough to threaten your life or health. That is the most simple example why anonymity matters in money / very liquid assets, and crypto is the most liquid asset there is! Notice also using credit card or fiat is anonymous in such case (merchant does not know how much you own).

Solution?
Fortunately we have Zcash and other tokens from that family (KMD and assets, Hush and Pirate recently to name a few). Owning these tokens on z-address allows privacy (and your life and health security if you understand above example!) - but only if you use the z-address. The most private of those is Pirate by far - the highest rate of z-transactions on that network. For your privacy->safety. As a bonus you get even stronger privacy then using online banking - even officers may not know how much you have if you do not share this information.

Myths debunked

Myth number 1 says that anonymity is for criminals mostly. But as you understand now - it's for majority of regular people to protect them from criminals in the first place.

Myth number 2 says that anonymity is for rich people. Also false. Most people suffering from thief's or robbers are regular people. It's very hard to steal multi-millionaires' life savings, but it's easy to do so to normal people, which will suffer much more in that case.

Both myths basically claim that anonymity is for small minority and anyone who spreads them actually works against the majority of people who needs protection (=anonymity) from criminals at least on the same level as regular bank account give them.

PS
If you want to try Pirate (Arrr token) there is an official twitter account https://twitter.com/PirateChain/
and website for more information https://pirate.black/

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