Does sound money have to be Private?

[oktana]

I don’t understand what you mean by sound money. I think you can just say that the US dollar is tracked by the US government and leaves no privacy. But a currency like Bitcoin is decentralized as there’s no middle man and it supports privacy because all that matters to receive money are wallet addresses and not our government names which can be identified.

[johnsaributua]

Well it turns out quite a lot, is there an article link that can be trusted to find out the extent, sir?

I agree, because it is more comfortable to transact in your own hands and without any interference from others, although the safe claim at a bank sometimes makes me uncomfortable, but I used to not care too much because my transactions were still small and only local domestic users. With the blockchain I prefer to use usdt for transactions and keep prices stable, it has become a habit to send and save if I need it anytime very quickly without 3rd party validation.

So far crypto is spreading effectively and quickly, even though it is private and there is no special storage in the country more precisely personal. Unfortunately, there are ministries that want to monitor and even regulate when crypto transactions are made, especially when depositing and withdrawing funds . it's not a problem for cex users who are used to it, I prefer to use a non-custodial wallet or my own private wallet.
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Although there is government interference I think they have awareness in any financial activity, and hopefully in the future the legal protection for crypto transactions will be paid more attention, just like paying attention when taxing , cryptocurrency is a new trend that is perfect.

[Darker45]

In general, I'd say, yes. Sound money should be that which provides freedom to its users. It won't be sound money if the bearer cannot make use of it without somebody else's approval. It won't be sound money if it doesn't fulfill its very function without the approval of somebody in power.

However, in all fairness, from the viewpoint of a law enforcer, for example, it might be efficient to have a currency that can be monitored. This would at least make their job easier in terms of stopping illegal activities. This is problematic, though. Not only does it encroach people's privacy, it is also prone to abuses.

I admit that it's hard to hit a balance regarding money.

[sekalitas]

Over 95% of the US dollar is digital and all of the digital dollars are in the custody of a Bank.  When you make a purchase or transfer your US dollars your transaction is tracked and approved by the bank and by extension, the US Government.

Can you consider a transaction that is monitored and approved sound?

I think for a money to be sound you must be able to transact privately with no third party in the transactions.

What do you think?

I understand the discomfort of having transactions monitored and approved by someone else. However, while privacy is important, a degree of monitoring and regulation is essential for a healthy financial system. Tracking transactions helps prevent crimes like money laundering, tax evasion, and terrorism financing. This oversight fosters trust in the currency by providing security and protecting consumers from fraud with recourse options in case of disputes. While some level of financial privacy is valuable, completely unregulated systems open the door to abuse and threaten the long-term viability of any currency. A prime example is the high volatility of cryptocurrencies, whose uncontrolled value can fluctuate dramatically.

[Woodie]

Over 95% of the US dollar is digital and all of the digital dollars are in the custody of a Bank.  When you make a purchase or transfer your US dollars your transaction is tracked and approved by the bank and by extension, the US Government.

Can you consider a transaction that is monitored and approved sound?

In the world we Iive in, I guess we can say so from the "government's point of view" and for money to go through the system can clear your name of any money laundering, tax invasion etc as there is a money trail should it pass through the bank system and you can point it's origin and the alike.

But from a cryptonians point of view, this is not sound as privacy isn't respected with all prying eyes on your money and someone somewhere is keeping tabs on you...I guess this is why crypto is a success!

I think for a money to be sound you must be able to transact privately with no third party in the transactions.

What do you think?

In a decentralized setup, privacy will be respected but unfortunately when it comes to fiat privacy is thrown out of the window as the system needs to account for all the dollars which is also impossible to do..

[wxa7115]

Over 95% of the US dollar is digital and all of the digital dollars are in the custody of a Bank.  When you make a purchase or transfer your US dollars your transaction is tracked and approved by the bank and by extension, the US Government.

Can you consider a transaction that is monitored and approved sound?

I think for a money to be sound you must be able to transact privately with no third party in the transactions.

What do you think?

You are mixing two different concepts, which is money and the transactions you can make with it, both money and the transactions you did used to be private back in the days when precious metals were used to purchase anything, since anyone could mint a coin and you could buy whatever you wanted with it without the approval of any third party.

But governments soon realized the power they could gain if they interfered in that process, which is why they are trying to eliminate cash and bitcoin as well, so the world economy could function with private money and private transactions, it is just that this is a world governments do not want to see.

[Kakmakr]

I think the main thing to remember is that financial anonymity has advantages and disadvantages. Let's say you are a hacker and you found an exploit to steal millions of dollars worth of Crypto currencies from a third party wallet, then you transfer that to a unregulated exchange, where you launder or wash that money anonymously and you cash out that money... for the hacker that is heaven, but for the victim that is Hell.

Bitcoin is pseudo anonymous, but under the right circimstances all the transactions can be traced when you re-use addresses. Fiat transactions are open for anyone with the correct security clasifications and that includes corrupt government employees or people working in the Banks that might be working with the criminals.  

[kryptqnick]

That's a good question because, historically, I don't think money has always been under state control. People used valuable things like literal gold as money, for example, although coins marked with the faces of rulers are also a very old and established thing.
To me, it's generally okay to use fiat, knowing that it's centralized and that all my digital payments with it are linked directly to my legal identity. But it's also very nice to have Bitcoin as an alternative, just to know that it's also an option.

[bettercrypto]

Over 95% of the US dollar is digital and all of the digital dollars are in the custody of a Bank.  When you make a purchase or transfer your US dollars your transaction is tracked and approved by the bank and by extension, the US Government.

Can you consider a transaction that is monitored and approved sound?

I think for a money to be sound you must be able to transact privately with no third party in the transactions.

What do you think?

I understand the discomfort of having transactions monitored and approved by someone else. However, while privacy is important, a degree of monitoring and regulation is essential for a healthy financial system. Tracking transactions helps prevent crimes like money laundering, tax evasion, and terrorism financing. This oversight fosters trust in the currency by providing security and protecting consumers from fraud with recourse options in case of disputes. While some level of financial privacy is valuable, completely unregulated systems open the door to abuse and threaten the long-term viability of any currency. A prime example is the high volatility of cryptocurrencies, whose uncontrolled value can fluctuate dramatically.

So it is not good to put a large amount of money in the bank because we know that when we declare bankruptcy, we will not be able to claim the sum of the money that we entrusted to the bank. But we can't hide anything from them because the bank knows about our privacy; in short, our government also knows for sure.

That's why you can't blame the others either because they prefer to stay at home or because the others are in business or they will spin it in their business.

[stomachgrowls]

Over 95% of the US dollar is digital and all of the digital dollars are in the custody of a Bank.  When you make a purchase or transfer your US dollars your transaction is tracked and approved by the bank and by extension, the US Government.

Can you consider a transaction that is monitored and approved sound?

I think for a money to be sound you must be able to transact privately with no third party in the transactions.

What do you think?

I understand the discomfort of having transactions monitored and approved by someone else. However, while privacy is important, a degree of monitoring and regulation is essential for a healthy financial system. Tracking transactions helps prevent crimes like money laundering, tax evasion, and terrorism financing. This oversight fosters trust in the currency by providing security and protecting consumers from fraud with recourse options in case of disputes. While some level of financial privacy is valuable, completely unregulated systems open the door to abuse and threaten the long-term viability of any currency. A prime example is the high volatility of cryptocurrencies, whose uncontrolled value can fluctuate dramatically.

So it is not good to put a large amount of money in the bank because we know that when we declare bankruptcy, we will not be able to claim the sum of the money that we entrusted to the bank. But we can't hide anything from them because the bank knows about our privacy; in short, our government also knows for sure.

That's why you can't blame the others either because they prefer to stay at home or because the others are in business or they will spin it in their business.

All matters on someones financial literacy on which not all would really be that having that kind of level of knowledge when it comes to financial aspect or economic or something that connected into this one.
When it comes to about privacy then there's nothing we can hide into the government or any centralized platforms since each one of them would really be that connected to each other on which means
that information in regarding about you would really be that entirely be known and they could pull it our once its been requested. This is why you cant really be able to blame out people on finding out those
ways and methods that they would really be able to stop such tracking by making use of other alternatives such as crypto. 

There's no way that we could hide out our finances unless if its on fiat form but once you do able to touch up with those centralized services and other stuffs then
everything is really that been known.

[beerlover]

Fiat is a centralized currency.  It will always be traded under third party monitoring.  This is how it was made.  It will be under the control of a country's government.  You cannot call it wrong or think of correcting it because it is made that way.  Bitcoin, on the other hand, was created as a decentralized currency.  The owner can do the transaction alone and there will be no other third party presence.  Currency should be accepted and used as it was created.

This is exactly why I am using crypto as well, there isn't any type of changes made by some person who wants to make a change. That's literally the situation at fiat, some dude goes and says he wants this, and he gets it, that's it.

Of course people elect that person so it is not like some random guy, but at the end it is still one person. Whereas in crypto we all make our decision and not really make it any different, we could improve it and make changes if we want to, but that doesn't mean that we are going to be at the mercy of anyone else. This is why decentralized currency is far superior than centralized currency. Fiat is the old money, there is no need to keep investing in it, you will not gain anything from it at all.

[jaberwock]

bitcoin is the definition of freedom when it comes to financial because we know how bitcoin is secured and trusted no one could access to our transaction or know your identity in the crypto space, but as bitcoin technology is advanced and secured it can also be used for doing hidden transaction or transactions that is made because of someone doing a crime, that's is also why government are very hesistant in bitcoin because they can't track the identity of someone who is using bitcoin but if we will look to the brigther side, bitcoin really is something that is powerful and very useful for us, especially in terms of finance, you can surely earn in bitcoin as long as you know how to, and you can rest assured that your money will not have any tax or deduction so thats the greater in crypto currency, so bitcoin provides the most secured, safe and privacy.

There is a limit to that, you can be "hidden" in the sense that your name would not be known, but your wallet would be and everyone could follow where that money goes to. There are even companies that goes into detail and catch people who used mixers as well, there is rarely ever getting out. Most people who stole bitcoins from a place got caught because they were tracked and you can't find a way to get your bitcoins to become fiat cash without going into database, you will be caught.

That is why it is more about people not caring who you are when you are dealing with crypto, that seems to be the most important part. I believe it will get better with time, but that doesn't mean that we are going to end up with freedom as much as you think.

[Uhwuchukwu53]

I don’t understand what you mean by sound money. I think you can just say that the US dollar is tracked by the US government and leaves no privacy. But a currency like Bitcoin is decentralized as there’s no middle man and it supports privacy because all that matters to receive money are wallet addresses and not our government names which can be identified.

You speak volume in my heart of the op sound money because the phrase got me laughing, because all money is sound just the operational different and privacy matters.
It's already clear about the operational system of Fiat and crypto currency it's left for whoever ever to choose the one that fit him/her regards to it style of investment and nature in which it's identity is desire to be hidden. I would repeat because I have seen allot if explanation regards to the clear standing between fiat and crypto currency that calling any one not sound is comparing two things with different objective.

[Mauser]

Over 95% of the US dollar is digital and all of the digital dollars are in the custody of a Bank.  When you make a purchase or transfer your US dollars your transaction is tracked and approved by the bank and by extension, the US Government.

Can you consider a transaction that is monitored and approved sound?

I think for a money to be sound you must be able to transact privately with no third party in the transactions.

What do you think?

A government will argue the exact opposite, that a transaction that can be tracked and verified is not sound. The answer probably is somewhere in between. The government relies on taxation which is why they want to be sure that everything can be tracked and people don't engage in tax evasion. As for the average consumer that is looking for privacy there is still the option to use cash and not be tracked by the government. The problem with large cash purchases is that we need to meet the buyer or seller in person and don't know how safe that encounter is going to be.

[fuguebtc]

I don’t understand what you mean by sound money. I think you can just say that the US dollar is tracked by the US government and leaves no privacy. But a currency like Bitcoin is decentralized as there’s no middle man and it supports privacy because all that matters to receive money are wallet addresses and not our government names which can be identified.

But I want you this, are you using centralized exchanges to buy and sell bitcoin? Do you use a bank or fiat for your bitcoin transactions? Bitcoin is a decentralized and privacy-preserving currency, but the irony is that to own bitcoin, we need to use banks, fiat , and centralized services. So are we truly anonymous or is our privacy 100% guaranteed when we own bitcoin?

Bitcoin is decentralized but that doesn't mean the people who use or own it will be the ones who can guarantee their privacy, it all depends on how we use them .

[Hanadawa]

Over 95% of the US dollar is digital and all of the digital dollars are in the custody of a Bank.  When you make a purchase or transfer your US dollars your transaction is tracked and approved by the bank and by extension, the US Government.
Can you consider a transaction that is monitored and approved sound?
I think for a money to be sound you must be able to transact privately with no third party in the transactions.
What do you think?

Initially FIAT currency was created to replace the use of exchange tools such as gold or silver. But when there are many transactions on an international scale, new problems arise, such as misuse of money for crime. That's why now every transaction will be tracked and verified by the Government. Some say this is just the government's excuse because recorded transactions mean the government knows where this huge influx of money is going and how much each person's wealth is.

But when it comes to sound money I think privacy is not something that is important. Firstly, for ordinary people, I think the number of our transactions will not be highlighted by any party. Secondly because we cannot achieve the privacy we want with today's technology. It's possible that Bitcoin can give you privacy/pseudonymy, but when you make a withdrawal you will use a bank, and your identity will be known to the government.

[bluebit25]

Sound money means a currency that is free from devaluation and inflation, while good money means that it is not overly controlled by the government. Fiat money is issued and managed by the government, which limits personal freedom.

Cash transactions can provide some anonymity, but they are not very practical in today's world. That's where bitcoin comes in, both as a speculative asset and as a decentralized alternative with anonymous transactions, giving users more control over their financial privacy.

[adzino]

Over 95% of the US dollar is digital and all of the digital dollars are in the custody of a Bank.  When you make a purchase or transfer your US dollars your transaction is tracked and approved by the bank and by extension, the US Government.

Can you consider a transaction that is monitored and approved sound?

I think for a money to be sound you must be able to transact privately with no third party in the transactions.

What do you think?

It's a centralized currency that is controlled by the government and "belongs" to the government. So yeah, of course the government is going track how you are spending those money. For some people, they feel safe when using FIAT currency knowing that if something goes wrong, the banks/law/government will be able to help them to some extent. They don't have to worry about securing or taking care of the money as long as they save it in the bank. For them crypto currencies which are decentralized are too complicated and risky to hold. But they don't realize that the fiat money can be confiscated anytime and they can be denied access to their funds, where as coins like bitcoins only belong to them and no one can deny them access to it. By the way, even if you use bitcoin to make purchases, specially large purchases, you will need to declare it to the government. In the end of the day, nothing stays private.

[CageMabok]

I don’t understand what you mean by sound money. I think you can just say that the US dollar is tracked by the US government and leaves no privacy. But a currency like Bitcoin is decentralized as there’s no middle man and it supports privacy because all that matters to receive money are wallet addresses and not our government names which can be identified.

That is a very real difference between Bitcoin and any fiat currency so it is not surprising that the US dollar can be very easily tracked by the government itself. However, for Bitcoin, I don't think it is necessary to compare it with fiat currency because basically it is very different in several ways and one of them is as you said. Now there are more and more Bitcoin users due to the increasing trust of many people in Bitcoin's decentralization and not needing a third party when they want to carry out transactions.

[oktana]

I don’t understand what you mean by sound money. I think you can just say that the US dollar is tracked by the US government and leaves no privacy. But a currency like Bitcoin is decentralized as there’s no middle man and it supports privacy because all that matters to receive money are wallet addresses and not our government names which can be identified.

But I want you this, are you using centralized exchanges to buy and sell bitcoin? Do you use a bank or fiat for your bitcoin transactions? Bitcoin is a decentralized and privacy-preserving currency, but the irony is that to own bitcoin, we need to use banks, fiat , and centralized services. So are we truly anonymous or is our privacy 100% guaranteed when we own bitcoin?

Bitcoin is decentralized but that doesn't mean the people who use or own it will be the ones who can guarantee their privacy, it all depends on how we use them .

What you say is somewhat true. But think about getting paid in Bitcoin where you don’t have to buy it from a centralized exchange? And what if it were possible that all your expenses could be done in Bitcoin as well, wouldn’t it give the maximum privacy then? Because no one would know it was a payment for whatever it was, and no one would know that the $20 worth you sent was you making a purchase or maybe you sending to another of your wallet, or a million other possibilities.