There’s a huge misconception with the general public when it comes to cryptocurrencies and why privacy is desired so much. With situations such as exchange hacks, ransomware, and drugs often being related to Bitcoin and other cryptocurrencies, it’s easy to lose sight of the positives behind them and be fearful of statements like “Bitcoin is untraceable.” But privacy is, by far, one of the greatest aspects of cryptocurrencies, and not because of nefarious purposes.
Pushing Away From Constant Surveillance
The general idea behind privacy is that if you haven’t done anything wrong, there’s no reason to track everything you do. The tracking itself is a gateway for doing other things as well, like selling your data to other companies and invading your private life for things that are completely irrelevant and/or taken out of context. Think, for example, about things that have been purchased and then all of a sudden there’s ads across various sites (like Facebook) for similar things, add-ons, etc. This is because the data of the purchase or browse is being used in other ways to try to sell more stuff.
To illustrate the importance of privacy in a generalized form, we even have the somewhat recent GDPR regulations. Considering the severity of its introduction, it goes to show just how much this all matters – when even governments are getting involved.
How it Ties Into Crypto
Cryptocurrencies are a way to transact without needing a third-party – nothing more and nothing less. While there are blockchains being created for different purposes, such as company data, the currencies themselves are used for transacting. This is really akin to using cash: not everyone needs to know when Bob gives Joe $10 in cash, and the same is applicable to cryptocurrencies. To that end, it’s better to think of Bitcoin and other cryptocurrencies as being like digital cash. The only real difference is that they aren’t managed by a third-party (the government), don’t need third-parties to transact, and can be safely held in such a way that nobody else can access them (via brain wallets, hardware wallets, etc.). People don’t complain about cash as being a safe haven for illicit activity, and it can be transacted while leaving no trace a lot easier than cryptos can. And there are also a large number of people who refuse to use things like bank accounts and credit cards because they want to remain in control over their own finances and not have others tracking everything they spend money on – something that’s entirely possible to do via cryptos as well.
Bringing it to Cryptocurrencies
Being that cryptocurrencies are all about taking control over your own financial state and being able to use your own money as you wish, when you wish, it makes sense that making them private is a leap forward. This is especially true when considering the fact that Bitcoin and the like are the first real chance at doing things outside of the normal banking system, governments, and inflation-based money. While gold has historically been a good hedge against inflation, it just isn’t convenient to move and spend – cryptocurrencies, on the other hand, are both! There’s a lot going on in the crypto sphere when it comes to privacy, and we will keep you updated on the latest and greatest updates so you’re always a step ahead.