Privacy coins. How much do you think we need them?

[20kevin20]

We are living in an era of technology. Our entire present is digitalised day by day as we move on to a new normal where online is more prominent and important than the offline world.

Education has moved to the Internet, something that would've been considered a negative influence over children only one year ago. Things have changed quite drastically, although it happened so smooth we already got used to our new way of living.

As we move on with the digitalization, Bitcoin becomes more and more used. However, a considerable amount of people choose Bitcoin to enhance their financial privacy. Considering Bitcoin is not a private blockchain, tools like Chainalysis owns are a threat against a significant part of Bitcoin's users since the largest part of them do not use coin control and consolidate outputs and dust the wrong way, revealing their historical traces.

In consequence, the existence of privacy-focused coins might come in handy in the era where surveillance and control are on an All-Time High. On the other hand though, that is not the case for everyone - especially since investors are being pushed away as cryptocurrencies like Monero are slowly being delisted from exchanges while privacy slowly becomes a crime.

So I wanted to gather a general opinion on the subject. What do you think? In the current times we're living, are Monero and privacy-focused coins a necessity?

[OcTradism]

As we move on with the digitalization, Bitcoin becomes more and more used. However, a considerable amount of people choose Bitcoin to enhance their financial privacy.

Is it true to say that people accept bitcoin and choose to use it because they want to improve privacy level for their financial activities? I doubt that it is not true, and people mainly have bitcoin transactions to invest, trade, speculate. Only very few of them care to use bitcoin for privacy.

Considering Bitcoin is not a private blockchain, tools like Chainalysis owns are a threat against a significant part of Bitcoin's users since the largest part of them do not use coin control and consolidate outputs and dust the wrong way, revealing their historical traces.

It is their practices with bitcoin transactions. If they want, they can protect their privacy better.

In consequence, the existence of privacy-focused coins might come in handy in the era where surveillance and control are on an All-Time High.

There is maybe demand on privacy, real or fake. Fake demand comes from people who shout loudly and ask for privacy but in practice, they don't care to do so. If they invest in a privacy coin, it is because they see opportunity to get profit, not because of privacy they can attain from it. With those guys, in practice, they don't protect their privacy.

On the other hand though, that is not the case for everyone - especially since investors are being pushed away as cryptocurrencies like Monero are slowly being delisted from exchanges while privacy slowly becomes a crime.

Governments don't like bitcoin and cryptocurrency, especially they very don't like privacy coins. They will try to break them down as much as possible. Lawsuits on centralized coins that have known teams or pressures to delist privacy coins from unknown teams.

So I wanted to gather a general opinion on the subject. What do you think? In the current times we're living, are Monero and privacy-focused coins a necessity?

I think it is still necessary as the nature of life. The world, people, society need to have diversification and competition.

[poodle63]

Honestly, for few years I've been dealings things in internet and pay things using cryptocurrency and such, I don't really see the need of using privacy coin. I mean, even bitcoin itself actually isn't really enhancing your privacy,
someone finds out your address they could figure out what you used your btc for.
However, privacy coin like Monero is still needed, like for example if the government suddenly ban btc out of the blue whilst giving harsh punishment for possession. I think coin like Monero gonna be really useful to use at that time.
privacy coin is like that small space of freedom you got when everything is trying to poke into your nose, more specifically govenrment.
Maybe some of us don't need it at the current time, but it's nice to have something to use if worst comes to the worst.

[roosbit]

I think when it comes to finances,I think transparency is key which is one of the reasons of some of today's cryptocurrencies successful growth and large scale adoption, even though people are free to use mixers for any privacy concerns,but if big players are to join privacy coins wouldn't be attractive to them!.

[hatshepsut93]

They are needed already, since they are the best solution for private payments on the Internet, and as cashless society gains more and more ground, they become even more necessary. But Bitcoin is getting more private too - Lightning network transactions are private, there is coinjoin, new proposals like Schnorr signatures will get implemented. If Bitcoin will cover the needs for privacy, there will be much less reasons to use special coins for that, especially if they come with problems like blockchain bloat or 51% attacks.

[20kevin20]

Is it true to say that people accept bitcoin and choose to use it because they want to improve privacy level for their financial activities? I doubt that it is not true, and people mainly have bitcoin transactions to invest, trade, speculate. Only very few of them care to use bitcoin for privacy.

Bitcoin is falsely advertised by many as an "anonymity-providing" cryptocurrency. I find it as wrong as the false advertisement of "anonymous VPNs" by YouTubers. You're certainly not wrong - most people do have BTC mostly as an investment! But it isn't a rare thing at all to find lots of newbies on here being totally surprised that they have never actually been anonymous with BTC.

It is their practices with bitcoin transactions. If they want, they can protect their privacy better.

But do they even know they can? It took me many years to even find out that I've been using it the wrong way!

Governments don't like bitcoin and cryptocurrency, especially they very don't like privacy coins.

While I agree with the latter, I am starting to doubt they don't like Bitcoin. Since people don't take care of privacy, BTC is a perfect way for them to monitor a very large part of the transactions and addresses.

~

Fair enough.

I think when it comes to finances,I think transparency is key which is one of the reasons of some of today's cryptocurrencies successful growth and large scale adoption, even though people are free to use mixers for any privacy concerns,but if big players are to join privacy coins wouldn't be attractive to them!.

Don't you think privacy-focused coins would be very attractive to them behind the scenes though? Big players may love control, but they only love controlling others while having their own freedom. I doubt they wouldn't love having most BTC addresses under control while keeping their own funds in coins like Monero themselves.

They are needed already, since they are the best solution for private payments on the Internet, and as cashless society gains more and more ground, they become even more necessary. But Bitcoin is getting more private too - Lightning network transactions are private, there is coinjoin, new proposals like Schnorr signatures will get implemented. If Bitcoin will cover the needs for privacy, there will be much less reasons to use special coins for that, especially if they come with problems like blockchain bloat or 51% attacks.

I personally think privacy by default is still better than optional one. Once you go for opt-in privacy, "they" start suspecting you. On the other hand, coins like XMR have it by default so you are private from the start.

[masterrex]

IMHO, I believe as an industry we should abide by the existing laws of the land, and cryptocurrencies are not exempted because we operate in our respective boundaries/countries so with that fact we should abide by the existing laws/regulation and the privacy coins like Monero, Zcash, etc. has superb privacy features that even a sophisticated government like the US are in a hard time to tract its transaction thats why they are afraid that it might be used for all illegal means like terrorism financing, etc. in that case I think we should ceased of using privacy coins for now. 

[takngantuk]

As we move on with the digitalization, Bitcoin becomes more and more used. However, a considerable amount of people choose Bitcoin to enhance their financial privacy.

Is it true to say that people accept bitcoin and choose to use it because they want to improve privacy level for their financial activities? I doubt that it is not true, and people mainly have bitcoin transactions to invest, trade, speculate. Only very few of them care to use bitcoin for privacy.

yes I agree with you, the average person who holds bitcoin doesn't care about privacy. they only use bitcoin for investment and make a profit. even if asked, which one is more profitable between using it as a means of payment or investment, they definitely prefer investing.

[cabron]

There wouldn't be a market for XMR and other anon coins if there isn't the need for it. Other countries are blocked to access materials like subscription and porn which has a market online, they may be able to purchase through these privacy coins. It's awkward but it's happening. The adoption of cryptocurrency I think will make privacy coins a lot more necessary because there will be more people who want to hide from surveillance.

[Lordhermes]

I think op had written similar topic like this long time ago, analysing the cost of entering into privacy policy coins.
Entering the Privacy & Anonymity Atmosphere. What are the costs?

I still see the need to bring it to our awareness again because the stability of privacy coins is still intact, meanwhile some investors think that privacy policy coins might have been banned and stopped to be operated by now, what if in 2022 upward we still analysing them won't you think they are gaining momentum?
To be sincere and realistic, privacy coins is the best options in dealing in the crypto space despite the fact that they aren't superior over the first mover advantage Bitcoin.
There's need for privacy coins for users that want privacy is their transactions, if they should be banned meanwhile mixers should be stopped as well because they functions as the same in one way or the other.

[Squezzi55]

Privacy is still very important I believe, many still don't want to leave their own tracks online for their own reasons so yes I expect privacy coins to have a better home in future, I'm thinking they are better on real decentralized exchanges, because in future if privacy coins becomes a thing the SEC and government can go to war against privacy coins so they ate better on decentralized exchanges

[20kevin20]

IMHO, I believe as an industry we should abide by the existing laws of the land, and cryptocurrencies are not exempted because we operate in our respective boundaries/countries so with that fact we should abide by the existing laws/regulation and the privacy coins like Monero, Zcash, etc. has superb privacy features that even a sophisticated government like the US are in a hard time to tract its transaction thats why they are afraid that it might be used for all illegal means like terrorism financing, etc. in that case I think we should ceased of using privacy coins for now. 

Having privacy is abiding to the existing laws of the land. I never thought I'd see the day when people will see privacy as terrorism or illicit activity. If they want to focus on reducing criminality, fiat is the first and most powerful enemy they should confront. There's no way a cryptocurrency provides more illegal activity than a monetary system that's been alive for centuries does.

[Twinkledoe]

IMHO, I believe as an industry we should abide by the existing laws of the land, and cryptocurrencies are not exempted because we operate in our respective boundaries/countries so with that fact we should abide by the existing laws/regulation and the privacy coins like Monero, Zcash, etc. has superb privacy features that even a sophisticated government like the US are in a hard time to tract its transaction thats why they are afraid that it might be used for all illegal means like terrorism financing, etc. in that case I think we should ceased of using privacy coins for now. 

Having privacy is abiding to the existing laws of the land. I never thought I'd see the day when people will see privacy as terrorism or illicit activity. If they want to focus on reducing criminality, fiat is the first and most powerful enemy they should confront. There's no way a cryptocurrency provides more illegal activity than a monetary system that's been alive for centuries does.

That is true, fiat has still the major role in terrorism or other fraudulent activities. And the government is having hard time to track them down. Now, they are after for the privacy coins because for them, maybe, it is easy to ban the usage of it because they can run after on the exchanges that are trading it. But I don't think all governments will prohibit the use of privacy coins, there will always a government that will accept them.

[20kevin20]

But I don't think all governments will prohibit the use of privacy coins, there will always a government that will accept them.

For sure, but the larger countries still matter the most. If USA decides to indefinitely ban privacy coins, it's literally declaring war on privacy. Other countries will see that as a massive opportunity instead and will decide to support privacy coins instead.

However, a ban or an oppression in a large country still means a significant reduction of volume and usage of the said cryptocurrency. Devs from the said country would probably stop supporting the coin's development so they wouldn't be legally penalized.

There will always be alternatives, but how many people would really consider them? Do you think a lot of people'd leave the US in case of a Monero ban? I wouldn't!

[Farul]

But I don't think all governments will prohibit the use of privacy coins, there will always a government that will accept them.

For sure, but the larger countries still matter the most. If USA decides to indefinitely ban privacy coins, it's literally declaring war on privacy. Other countries will see that as a massive opportunity instead and will decide to support privacy coins instead.

However, a ban or an oppression in a large country still means a significant reduction of volume and usage of the said cryptocurrency. Devs from the said country would probably stop supporting the coin's development so they wouldn't be legally penalized.

There will always be alternatives, but how many people would really consider them? Do you think a lot of people'd leave the US in case of a Monero ban? I wouldn't!

just make up some reason like "most of privacy coin are used for criminal activity," and the public will believe it. Remember snowden? how much people actually care about it?  the public backlash would be minimum for privacy coin ban.

IMHO, The statement of "crypto is censorship resistant" are not very true, if governments around the world ban it, less people want to be involved, the value will be dropped significantly(massive sell pressure), and the network security would be decreased significantly too.

[bitcon]

The main advantage of cryptocurrency is its anonymity. Of course, I don't know what awaits us in the future, but I think states are interested in controlling financial transactions in the crypto space. This means that they will try in every way to kill anonymity, or at least reduce it to the possible limit.

[BITCOIN4X]

In the current times we're living, are Monero and privacy-focused coins a necessity?

Besides there are service that can increase users' privacy to send and receive cryptocurrency anonymously like mixer, privacy coin are what they need on the darknet. Privacy coin are very popular there and widely accepted and that is exactly what they need.

Mixer service helps users to have a good privacy and maybe some of them would prefer bitcoin over altcoin if adoption is the reason. There are so many people who care about their financial privacy and I think the privacy coin is an alternative to bitcoin. MONERO, DASH, ZCASH are some example of the popular privacy coin these days.

[Reid]

privacy coin is like that small space of freedom you got when everything is trying to poke into your nose, more specifically govenrment.
Maybe some of us don't need it at the current time, but it's nice to have something to use if worst comes to the worst.

Yes, that's nice.
Not everyone will agree though.
I guess it all comes down if we can trust our own government to not steal our kept funds.
You put it in banks they take it without permission. Just a note that the funds was already gone because of government taxation reasons.
What if that is your last drop of money to eat for a month?

We still need the privacy even if it's not that totally private. Just to get away from how the world works ever since a government has more power than whom they govern.

[Clement Kaliyar]

One thing anyone would agree is that we need privacy and with all the government zooming in to infiltrate our privacy by monitoring all our actions and having the trace of our online life, we need these privacy coins even though there are news coming out that some of the governments might force exchanges to exclude these privacy coins we need them to be traded in DEX and some countries are planning to ban bitcoin trading altogether and to overcome those we need these privacy coins.

[hulla]

Footing the want/priority of the cryptocurrency community privacy-focused coins are a necessity but I think the privacy coin teams also don't think about the situation that may arise in the future when cryptocurrency become mainstream of payment when they created their coin to be total privacy cause they ought to make it both side functioning coin i.e sender can choose to send privacy or pseudomous payment.