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Are privacy coins the future?

in crypto •  17 days ago

Are privacy coins going to be a part of our future?

Privacy coins have been a hotly debated topic in 2018.

Initially they were punished much more so than the broader market as exchange after exchange was talking about delisting them.

Especially in Asia.

The reasoning?

Governments were increasingly forcing exchanges to abide by KYC and AML laws which are much more difficult to implement with privacy coins.

The bear case was that as exchanges become more and more regulated in order to stay alive, we would see privacy coins go by the way-side, at least for now.

This resulted in pretty bearish price action on the major privacy coins initially.

Things have changed recently...

However, now that the bear market has been in full swing for 9 months, the only coins really catching a bid as of late are two of the more popular privacy coins.

Monero and Dash both find themselves in the top 10 on coinmarketcap and both of them have seen double digit gains recently while the rest of the crypto markets were either standing still or going down.

This poses an interesting question to me, what is the future for privacy coins?

On the one hand they are finding it more difficult to get listed on regulated exchanges and on the other hand they provide a real utility in an arena that is struggling to find utility for many of the top 300 cryptocurrencies.

(Source: https://www.cryptocompare.com/coins/guides/a-basic-overview-of-the-best-privacy-coins/)

Satis says they are a big part of the future:

The Satis report that came out earlier this week placed special emphasis on privacy coins saying they are going to be some of the best investments going forward.

More about the report can be found here:

https://steemit.com/eos/@jrcornel/satis-report-you-won-t-believe-what-price-they-say-eos-is-going-to-within-the-next-year

They laid out several main categories that they think most of the value is going to come from going forward...

Those being: coins being used as a store of value, those being used as a currency, and then those that offered privacy.

Their premise was that outside of those 3 main drivers, the crypto markets are saturated and still vastly over-valued.

As time goes on, the money will flow into the very top coins in each of those 3 categories.

Which made Monero one of their very favorite investing choices over the next 5 years.

What say you, do privacy coins have a future like Satis believes or will they be regulated mostly out of existence, only being used by criminals and drug dealers in dark markets?

Let me know your thoughts in the comments below.

Stay informed my friends.

Image Source:

https://bitsonline.com/privacy-coins-financial-independence/

Follow me: @jrcornel

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I would let you know my opinion; but I value my Privacy 🤪😂🤪

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I see what you did there, very clever!

Today the main issue for all crypto-currencies is to become regulated by the states. In this regard, increased anonymity may not be an advantage, but a disadvantage. I do not rule out such a decision on the part of government agencies:
Operations with BTC, ETH, ...
Prohibited transactions with Zcash, Monero, ...

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Exchanges are cracking down on them but if people eventually move more to decentralized peer to peer exchanges not sure how you control them?!

Verrygood

Steem is the future

Posted using Partiko iOS

I read the Satis report, and I must say I found my self surprised by it. All the platforms like coins ETH, EOS had bad predisposition and private coins excellent ones.

Don't know what to say. But it is true that offshore accounts have huge amounts of money, and if a part of them find their way into crypto, it will propel the price.

I'm not an expert on the topic, but is it necessary to use the private coins? A lot of coins can provide privacy, with couple of tricks done with them.

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Good points.

I have been warning my friends and family about privacy coins for a while. First of all they only reason why they wanted to invest in them is because they see a future utility in them- not that they have any usage for the privacy in the near term. Secondly they are trying to invest into technologies which they don't fully understand and this could have potentially devastating impacts.

The main problem with privacy coins is in fact their main function: the privacy. This allows people to use the currencies for hacking, money laundering, address tumbling and a whole range of other problems we have yet to fully discover. Don't get me wrong I believe there is a definite use case and purpose for privacy coins but the way that they are being utilized currently puts them in a bad light.

Once the Japanese exchanges delisted the privacy coins after the massive hack which used them to launder funds I saw the full scope of the issue at hand. Exchanges want to encourage safe practices while maximizing freedom and privacy coins jeopardize this delicate balance.

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Yep, that is exactly the problem. They will always be used for nefarious things as long as they are anonymous. The question is how big of a market will this present in the future?

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Somebody mentioned how there is hundreds of billions in Swiss bank accounts and some of that money could make its way into crypto via privacy coins. Definitely a possibility that some of that money has already made its way into crypto O.o

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Yep, I agree, on both points. Does that mean the market is potentially a couple billion or hundreds of billions?

I believe as long as people are using crypto in general the need for privacy coins will always be there

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True.

Yes I totally believe in privacy coins and their important for the whole crypto economics. I guess most people who find out that Bitcoin and Ethereum are not that privat as many people think will at some point want to get their privacy back by converting to one of the many coins. I personally like @pivx a lot because they offer you the best technology first mover privacy staking, decentralized privacy Dex (coming up) and a great community.
Lets cross fingers that not more countries join the ban waggon in order to frighten people!!!

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There are certainly use cases for these things. It will be interesting to see whether exchanges and governments try to squash them or not though.

In the end the crypto industry will divide to two groups. One supports coins that are regulated, and the other supports privacy. Eventually exchanges need to decide if they want to keep their user base or follow the regulations strictly as all bigger exchanges need to support at least one privacy coin.

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I could see that. Most exchanges will have to decide one or the other. Governments aren't going to give them their blessing if they are supporting privacy coins...

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Privacy coins are the future as people get frustrated over corrupt governments... Europe will be the test bed for new exchanges that focus solely on listing privacy coins. Nobody really knows if Monero can keep the position as base currency as recently some users have criticized the constant hard-forking to fight ASIC miners. Instead of killing the performance gain of ASIC miners, it seems Monero is slowly killing CPU mining and focusing on developing GPU-optimized algorithms.

I think privacy should be embedded by default in all the coins, all the wallets.

This is your very right.

Would be interesting to see coins such as Bitcoin adopting privacy features in the future, but at the same time you can't have a coin doing everything, that's why we have such diversity in the marketplace.

Posted using Partiko Android

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Bu then the government wouldn't know who owned what or what was buying what, we can't have that now can we. (Sarcasm font on)

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Ohh right! So silly of me!

Posted using Partiko Android

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Moreover, everybody would use it to buy drugs :O

Posted using Partiko Android

they may be for sure but not at this time looking at the alternatives present not much usage of it

Privacy is not just for criminals.

If I know your BTC or ETH address I can go and take a peek inside and examine all your transactions (I even built a tool for this - trivial.co). Can't do that with Monero!

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Agreed, but that is not how the government will view them.

To the question in your title, my Magic 8-Ball says:

Signs point to yes

Hi! I'm a bot, and this answer was posted automatically. Check this post out for more information.

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Well I wasn't sure, but I am glad that was cleared up for me.