Why do privacy coins do so poorly?

[ulhaq]

Even the best known one, Monero, has <1% of the market cap of bitcoin, it's really shameful. Is the reason these coins do so poorly because they are badly designed (which could be everything from the issuance to the mining to the cryptographic protocol to the governance), or is it because no one cares about privacy? Or is it because privacy is difficult to achieve today because of lack of DEX?

[kumiskura]

Because the government can not control and track them fully. Lately, the government tried their best to educate and regulate every possible thing related to cryptocurrency to control the flow and to prevent unnecessary problem happening in their country. If we are allowed to use this kind of project, they are afraid. They are not able to do something or prevent us from doing something that might harm the country itself.

[sufferer123]

Do not look at this only in terms of privacy coins. In general, as the chain usage of Coins increases, people will understand how important privacy providers are. Unfortunately, at least half of the people who buy coins in this market do not have one coin wallet, they only know the  exchanges. I think that the majority of the remaining 50% just opened the wallet because of the Bounty. Over time, people will really start using this technology. At present, 80% are only buying coins for profit, not for use. I think that the coins that provide privacy in those days will have a big share of the cake.

[dataispower]

I don't think privacy coins are not doing well as mentioned here. Generally altcoins are on the downtrend ever since BTC dominance overruled. Well, in terms of price, some holders of privacy coins get scared due to delisting most of the time by centralized exchanges when the authorities give them the ultimatum.  Techwise, some new privacy coins even have duo consensus algorithm, making use of both POW and POS, and also always on technology. Aside privacy, some now use zerocoin protocol to reduce fees. So I don't think privacy coins will be extinct, they are very valid in this space.

[farosa]

Even the best known one, Monero, has <1% of the market cap of bitcoin, it's really shameful. Is the reason these coins do so poorly because they are badly designed (which could be everything from the issuance to the mining to the cryptographic protocol to the governance), or is it because no one cares about privacy?

Most of us do not take time to think about others except making a profit (maybe we do not want). Frankly, I do not think we care about privacy.

Or is it because privacy is difficult to achieve today because of lack of DEX?

If it is not possible to use BTC itself as today's money, we can not preserve privacy, even with DEX.

[Pet240]

A lot of things need to be reviewed about privacy coin. Although, I am not saying that they are outrightly bad, but that it does not still arouse people's interests.
Then another thing is, what else do they have to offer aside being privacy coins.

[mr_random]

Even the best known one, Monero, has <1% of the market cap of bitcoin, it's really shameful. Is the reason these coins do so poorly because they are badly designed (which could be everything from the issuance to the mining to the cryptographic protocol to the governance), or is it because no one cares about privacy? Or is it because privacy is difficult to achieve today because of lack of DEX?

Privacy coins are not collecting enough investment because of the lack of understanding by mass. The mass adoption will bring the new investors who will invest in the privacy coins IMHO. The transparency is barely anonymous in the Bitcoin blockchain but it can't be perfect as Monero. Privacy-focused coins will be the future of anonymous online payments and I will hold these coins till that day: Monero,Zcash,Pivx,Tele

[Bitbtc8]

Monero might have low marketcap but dont forget that many people still like privacy coins better than other coins in crypto space,government dont like privacy coins because of their anonymous features they like transparency coins only but this doesnt mean that privacy coins have no future,id rather hold monero than so other top 20 altcoins

[OdelettePaiement]

I agree with the fuer44 member. In this crypto market everyone just wants something transparent, which far exceeds the desire for confidentiality. And this choice of people happens at least today and I think it will remain so for many more years from now on.

[Tipstar]

Even the best known one, Monero, has <1% of the market cap of bitcoin, it's really shameful. Is the reason these coins do so poorly because they are badly designed (which could be everything from the issuance to the mining to the cryptographic protocol to the governance), or is it because no one cares about privacy? Or is it because privacy is difficult to achieve today because of lack of DEX?

Firstly, not every people need to use a privacy based coins. And secondly the competition between these so called privacy based coin is immense. The coins with a coin holding teams are doing their best to advertise their coin as the best privacy coins but in real the use of such coins are limited.
I've heard monero is the coin of choice for dark web but other coins are still to get their markets.

[Darker45]

Privacy coins are doing quite well. It does not mean that because they are only comprising a little percentage of the total market value of the whole of cryptocurrency it is not doing well. First and foremost, the crypto market is made up of thousands of coins. Secondly, more than half of the entire market value is already with Bitcoin. The other half is divided among so many altcoins. Moreover, Monero (XMR) has been at the top level ever since. However, it is not only Monero that boasts of privacy. There are a handful of others. Dash is known to be offering a great level of privacy as well. Verge is the same. Finally, privacy coins target a focused niche.

[Pffrt]

Other than Monero, no else privacy coin has a real use case. I don't know if someone really using privacy coins to hide their financial activity. Privacy coins are the same as other altcoin, BTC is getting increased its domination and alt is falling.

[Samayuki]

To me privacy coins are doing well and monero is an old privacy coin that i still invest in but many good privacy coins have entered crypto space and they are seeing big adoptions from privacy coins lovers,coins like apollo has better adoption rate and even the latest sero cash

[TastyChillySauce00]

Because only small percentage of people uses privacy coin. Imagine if crypto becomes really popular and everyone knows this kind of privacy coin and you are trying to use it then being figured out by people close to you. What kind of weirdo mockery will be pulled on you LOL.
Most of people that uses crypto generally doesn't even think about this kind of anonymous currency.

[Pffrt]

Because only small percentage of people uses privacy coin. Imagine if crypto becomes really popular and everyone knows this kind of privacy coin and you are trying to use it then being figured out by people close to you. What kind of weirdo mockery will be pulled on you LOL.
Most of people that uses crypto generally doesn't even think about this kind of anonymous currency.

True, there's no much real adoption.
However, there's also some more reason like regulations on privacy coin is impossible, as a result, no govt will allow privacy coins to be used even if bitcoin is used by all the countries.

[Herbert2020]

it is best to refer to these coins as "anonymous coins" instead of privacy coins because people care about privacy and bitcoin offers privacy and lots of it but they may not care that much about anonymity which bitcoin doesn't offer that much while these anon coins do offer high levels of it.
this may be one of the main reasons why they don't do that well in this market.

other reasons is their flawed design. for example some of them are not even true anonymous coins since they don't even enforce the anon. features. many just use TOR and call that anonymous!!!
but the bigger coins like Monero that are full anonymous may be doing poorly because of their complications for example it is harder to run a Monero node and it has severe scaling issues.

[mindrust]

There simply is not enough demand for those coins.

As long as governments don't tighten their grip on bitcoin and other semi anonymous blockchains, people will keep using them.

Monero's only chance is if the government start to track and tax or question every known bitcoin holder. That's when people are going to give up and move to the anonymous blockchains. I don't see it happening in the near future but there is a possibilty.

Govs wouldn't wanna scare people to a system where they have no power over from a semi-anonymous blockchain ledger where they can see all the transactions.

I believe in bitcoin but right now it is probably a good idea to buy some monero and hodl in case some unwanted shit happens to btc.

[rosezionjohn]

Even the best known one, Monero, has <1% of the market cap of bitcoin, it's really shameful. Is the reason these coins do so poorly because they are badly designed (which could be everything from the issuance to the mining to the cryptographic protocol to the governance), or is it because no one cares about privacy?

Both are reasons to people not getting into these privacy-focused coins. Another thing to consider the presence of bitcoin mixers/blenders. If bitcoin users can find another way to make their transactions more anonymous, then there's probably no need to use other coins.

As long as governments don't tighten their grip on bitcoin and other semi anonymous blockchains, people will keep using them.

Same thought. Tightening government regulations will create more demand for these coins.

[xenomorphe1]

No one care about privacies. Traders pass KYC and are no more anonymous when on exchanges. Yes, you can trade on small exchanges, but most of them are asking for KYC now. They are only used for speculation.

[btccrusher]

Everyone cares about privacy but still, people cannot hide their funds due to all the KYC enabled exchanges. also, privacy coins is only for individuals, as if businesses use privacy coins most users won't invest becasue of lack of transparency. So it gets less liquidity compared to other coins that covering scalable security and fast transaction speed. This is why privacy coin still living behind.