Bitcoin was the first crypto-currency in the modern world. It seemed to have a high amount of anonymity during its early days. It seemed very interesting for various reasons. They included transactions that couldn’t be reversed, and encryption. There were some other interesting features including anonymity and privacy. It’s been almost a decade since the launch of Bitcoin in January 2009. The big question is where crypto-currency stands in the question of financial privacy.
Privacy and anonymity are important factors for all crypto-currencies. That includes the original Bitcoin and other digital currencies. The big question is how much autonomy people should have about how they spend money, fees paid for transfers, and so on. These are important issues to deal with regarding the digital monies.
It’s possible that future crypto-currencies will solve current matters related to block size, mining, transaction fees, block sizes, etc. This will provides more de-centralization. It would seem that people using the digital currencies are looking for new currencies that would solve those kinds of current problems.
Many people who have started using Bitcoin have become wealthy. That’s been done through roaming, mining, etc. and not paying fees to big banks. For many fans of the digital currency these are some of the main issues related to Bitcoin and other currencies.
There’s a good chance that anonymous crypto-currencies will have a big effect on changing technology used. It would be a big step in bridging the gap between the have and the have-nots. One of the big issues of many fans of crypto-currencies is the power of today’s central banks, which are owned and operated by the wealthy.
One of the most popular types of digital currencies is anon coins like Darkcoin. Various features of the currency included it being 100% untraceable, private, and anonymous. There were later other options like ZCash and Shadowcoin.
During this time Bitcoin Core/Bitcoin Unlimited were dealing with issues like block sizes and scalability. Meanwhile, other crypto-currencies were dealing with other innovations. However, some fans of crypto-currencies believe the game-changing tech will be related to issues like security, privacy, and encryption.
It could even be argued that Bitcoin isn’t very private. The number of people using the digital currency is skyrocketing. In addition it’s also being heavily regulated. During this time there’s been a secondary market of anonymous crypto-currencies.
In its early days one of the goals of Bitcoin that was discussed was the development of an electronic de-centralized currency. In fact, a big portion of Bitcoin’s market during the early days was actually built on the foundation of political forums. In fact, the argument against central banks and fiat money has been going on for quite a while.
Around 2010 the public started to become more familiar with blockchain tech, crypto-currencies, as well as anonymous financial transactions. The media also started reporting more about Bitcoin.
One of the options was anonymous transactions. This was used for sending money to foreign countries, purchasing products through the Internet, making quick online payments, etc. This provided people with freedom and autonomy. It should be noted that there were some people who began using Bitcoin for illegal reasons like paper money had been used for several decades. This resulted in various “deep web” applications.
People use Bitcoin for various reasons. Some people use it for political reasons such as battling central banks and rich families. Others invested in the crypto-currency because they knew that e-cash, de-centralized money, and secure crypt-currency would become popular, which is exactly what happened.
During the last few years some pro-privacy groups have started to question Bitcoin’s privacy. For example, if your transaction could be linked to your true identity it’s possible that hackers could find your entire payment history and then make links between buyers/sellers. This is a tough task but it could be done with the right know-how.
There are issues related to resource constraints that should be dealt with for transactions that are on-chain. There have been some steps that have already been taken and others are in the works. The goal is to lower costs and also make the block size safer during the future. There’s still a debate between different groups about privacy issues.
The bottom line is that there isn’t a consensus yet about anonymous crypto-currencies and privacy issues. It’s uncertain if there will be new paradigms that will show up. There are many solid reasons for keeping one’s payment history for digital currencies private. The debate is whether people are required to share their revenue and holdings to their government.
Based on world history some people are concerned about governments taking people’s money during wars and depressions. That situation could be avoided with better anonymity, privacy, and encryption for digital currencies. It will help to protect people from groups like central banks and oppressive governments.