Re: Tornado Cash sanctions as the beginning of the end of privacy coins?
It's true that there are still exchanges that are still listed and the government can't do anything with them, they can order certain exchanges to take them down but they can't dictate everything.
Governments can't do anything directly to the project but they can always target exchanges to take them down or create laws restricting users from owning as any crypto starts to get regulated. Privacy coins may continue to exist but there is no guarantee that users will continue to use them as the government itself will do whatever it takes to restrict users from acquiring these kinds of tokens.
if it's truly 100% decentralized, any sanction won't affect it because anyone can still use it. The price of privacy coins is based on demand and supply, so since the sanctions are primarily focused on privacy coins, it may drop the price due to panic and reduced demand. IMO holding privacy coins long term is not a good option as government always enforce KYC submission which will eliminate privacy issues.
Governments can't do anything directly to the project but they can always target exchanges to take them down or create laws restricting users from owning as any crypto starts to get regulated. Privacy coins may continue to exist but there is no guarantee that users will continue to use them as the government itself will do whatever it takes to restrict users from acquiring these kinds of tokens.
if it's truly 100% decentralized, any sanction won't affect it because anyone can still use it. The price of privacy coins is based on demand and supply, so since the sanctions are primarily focused on privacy coins, it may drop the price due to panic and reduced demand. IMO holding privacy coins long term is not a good option as government always enforce KYC submission which will eliminate privacy issues.
Governments know the easiest way to get into crypto with Fiat are centralized exchanges, so they're doing everything they can to prevent as much people from obtaining true financial freedom. You can see why there's KYC all over the place, making the crypto industry no different than traditional banking. It's very hard these days to buy or sell crypto without KYC due to the number of limitations introduced by mainstream governments. There are so many obstacles that the average person would prefer to give away his/her privacy to join the revolution.
Truly-decentralized and privacy-oriented projects are often a target of governments, as they want to stay in control/power no matter what. The US started with the Blender mixer and now it has escalated to the Tornado.Cash mixing protocol. What makes you think privacy coins won't be next? Other countries usually copy the US' footsteps, so things could only get worse in the long run. That's what we get when we want institutional investors and VCs to join the revolution. Don't expect regulations to soften anytime soon. Who knows what the future holds for crypto/Blockchain tech? Just my opinion
