The fate of privacy coins - crypto surrenders to the government?

[MrSpasybo 1049]

"Certain crypto assets, which are often referred to as privacy coins, private coins or anonymous coins, attempt to hide information about transactions, giving users more privacy. 

A number of possible methods exist for adding privacy to Bitcoin, including peer-to-peer trading, although multiple crypto assets focus on privacy more directly via their technology.

Government overwatch on privacy coins has grown in recent years, as shown in part by the IRS’ efforts against Monero’s technology. Privacy coin references also surfaced in the U.S. Financial Crimes Enforcement Network’s proposed regulation on self-hosted crypto wallets in December 2020."

Article: What are privacy coins and how do they differ from Bitcoin?

We all know some of the advantages of crypto: decentralization, high speed, low cost, and anonymity. XMR, ZEC, XVG have been supported by the community because they are privacy coins, that is, no one can know the information relating to the transaction.
Recently, however, under pressure from exchanges and governments, we have seen DASH deny its own anonymity feature. The Bitcoin community seems reassured because BTC is not a privacy coin.

I really don't understand this. As far as I know, crypto revolutionizes against the manipulative hands of governments, but it seems that under the pressure of regulation and community greed we forget the purpose of the revolution. This is only for our coin/token to be accepted.
I understand that project teams need to find a way for their coins/tokens to exist in the market, but when we surrender to the government, I feel sorry for Satoshi Nakamoto.

What happens next with privacy coins? Will the crypto community continue to support them or are they just silently watching them continue to be crushed by the government?

[yonkii 3205]

I am watching carefully developments on Monero. It is a fact that the investors fear regulations and possible ban of Monero by governments. It is also a fact that Monero has unique technology and has been seen as an anonymous way to transfer money around the world. This is the main reason that Monero could be put into severe regulations and placed in list of banned currencies. The support of the cryptocurrency community on Monero is strong always, but if governments decide it is some kind of threat, then it will lose a lot of the price it holds today.

[kyoukage01 3181]

On 2/18/2021 at 6:13 AM, MrSpasybo said:

What happens next with privacy coins? Will the crypto community continue to support them or are they just silently watching them continue to be crushed by the government?

The thing with pushing for wider acceptance of cryptocurrencies into the current society is that already-established entities will attempt to reject anything that upsets the status quo. The crypto community are being forced to stand at a crossroads and make a choice: fight the government and institutions and force them to accept crypto, or agree to a peaceful compromise. By the looks of things, the community has chosen the latter.

 

By choosing the "peaceful" solution, the governments demand that crypto should not be used extensively for criminal activities. And it just so happens that privacy coins are allegedly suitable for criminals' use, as transactions are hidden unlike mainstream coins like Bitcoin. What has originally been the purpose (I think?) of protecting the anonymity of users, criminals find that the same purpose also extends to them, thus they exploit that 'weakness'. Unless the developers of these coins offer irrefutable arguments that this isn't the case, current public perception of privacy coins will remain. And governments will let the hammer fall on them.

 

Crypto surrenders to the government? I think it already did years ago. Centralized crypto exchanges today wouldn't exist otherwise. And whatever Nakamoto-san feels about it, we'll never know. Unless he shows himself again over there at the Bitcointalk forum.

 

Edited February 25, 2021 by kyoukage01

[Abrar1122 10]

I don't think it is possible that the cryptocurrency surrender in front of the government because there is no person who is controlling the cryptocurrency it will be the government who will surrender in front of the cryptocurrency in the long run

[kryptonick 2659]

On 2/18/2021 at 12:13 AM, MrSpasybo said:

DASH deny its own anonymity feature.

Dash had an anonymity feature that wasn't actually working. It is found that the system they had could easily be breached and leaks were very possible. On the other hand, Monero is anonymous but anything that locks can be unlocked, and there are attempts to bypass the anonymity Monero offers. For what is worth, I would invest in Monero for reasons that this coin is used and will be used more in the future.

[huesca123 946]

On 2/17/2021 at 11:13 PM, MrSpasybo said:

crypto revolutionizes against the manipulative hands of governments

That is exactly why the Governments are against the privacy coins. Because they cant control, follow, tax, persecute, etc., the users of these coins. I think in the end, it will be broken into 2 parts, open coins like BTC & then privacy coins, like ZEC, LTC, etc.

 

People are feed up with the control & taxes that governments ransom its citizens to. You always get the idiots in the news saying what the government tells them to say. They use the argument that privacy coins are used for terrorism, black market or whatever else they can think of. The majority of the people are stupid enough to still watch & believe the news.

 

I am heavily investing in ZEC, Horizen / Zen, LTC & some other privacy coins that are cheap at the moment. Only time will tell if my gamble pays off.

[MrSpasybo 1049]

On 3/2/2021 at 6:55 PM, kryptonick said:

Dash had an anonymity feature that wasn't actually working. It is found that the system they had could easily be breached and leaks were very possible. On the other hand, Monero is anonymous but anything that locks can be unlocked, and there are attempts to bypass the anonymity Monero offers. For what is worth, I would invest in Monero for reasons that this coin is used and will be used more in the future.

@kryptonick DASH is working on that feature, but I don't think they have much incentive to do.
Monero's XMR has a very good upside potential, because it has only half the way to conquer ATH 2018. It is quite regrettable that it is one of the 4 top 50 coins with worse performance than Bitcoin in Q1.