As of late, crypto has become extremely popular due to the negative effects of COVID-19 in the mainstream economy. People are starting to consider crypto to be a safe-haven against the traditional monetary system empowered by banks worldwide. Yet, the vast majority still relies on Fiat for day-to-day transactions because of its price stability and widespread acceptance in the mainstream world.
With the advent of privacy coins, people can enjoy true financial freedom like never before. Privacy coins can become attractive tools for illicit activities because of their untraceable blockchain ledger. Despite all of the benefits privacy coins provide, criminals still rely on Fiat for all of their nefarious actions. I'm starting to wonder why, since Fiat (physical cash) is not as anonymous as one thought it would be. Privacy coins are truly anonymous (especially those that are private by default like Monero and Grin), as there is no central authority behind them. Maybe criminals prefer Fiat because of its high level of adoption in the mainstream world? Or maybe because Fiat has an easier learning curve than crypto?
If by any means criminals start adopting crypto in mass (especially privacy coins), we could expect a full government crackdown on the entire industry. Which is why I think it's best for criminals to continue using Fiat for the sake of the crypto/Blockchain industry's growth worldwide. But we'll never know what will happen in the future. Thoughts?
With the advent of privacy coins, people can enjoy true financial freedom like never before. Privacy coins can become attractive tools for illicit activities because of their untraceable blockchain ledger. Despite all of the benefits privacy coins provide, criminals still rely on Fiat for all of their nefarious actions. I'm starting to wonder why, since Fiat (physical cash) is not as anonymous as one thought it would be. Privacy coins are truly anonymous (especially those that are private by default like Monero and Grin), as there is no central authority behind them. Maybe criminals prefer Fiat because of its high level of adoption in the mainstream world? Or maybe because Fiat has an easier learning curve than crypto?
If by any means criminals start adopting crypto in mass (especially privacy coins), we could expect a full government crackdown on the entire industry. Which is why I think it's best for criminals to continue using Fiat for the sake of the crypto/Blockchain industry's growth worldwide. But we'll never know what will happen in the future. Thoughts?
People often confuse and mix up the different purposes of these digital currencies. There are some instances where it may be useful to have anonymity but for many day to day transactions it could be totally unnecessary, you simply want a digital version of physical cash which enables you to buy things. If I wanted to buy a book from a shop, I'm not super concerned about privacy that seems to be the endless quest that some people connect with cryptocurrency. The fact that nobody knows the wallet keeper with crypto like Bitcoin will be enough anonymity for most people. It is definitely true that criminals desire more privacy and chase these other coins because they want to "clean" the money that has been gathered through various illegal sources, it's all about finding a balance and holding a coin with a good reputation.