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3 Reasons why privacy is important while transacting in cryptocurrencies

3 Reasons why privacy is important while transacting in cryptocurrencies

Although Bitcoins were considered to be one of the safest methods to protect privacy, several questions have been raised on it. In the earlier days of cryptocurrencies, users did not pay much attention to behind the scenes while transacting in cryptocurrencies. Gradually, they began to understand the implications associated with the transactions. For example, many crypto users are interested in using privacy coins such as Zcash & Monero.  

Hence, it is extremely important for a user to adopt the right practices in order to maintain their privacy. 

We have listed a few reasons to underline why privacy is important while transacting in cryptocurrencies:

  • Compromising with data could give to undesired situations:
    Contrary to the notion of anonymity, Bitcoins actually works with extremely high levels of transparency. All the Bitcoin transactions are public and traceable. Moreover, they also get stored in the Bitcoin network. Bitcoin addresses are the only information needed from the user. Once those addresses are used, the history is trapped. In an era where data intrusion is a huge problem, being prone to data leaks make the problem even bigger. 

Damaged cryptocurrencies are prone to being blacklisted:
Cryptocurrencies are controlled by central instances today and there are many exchanges, which allow the trading of cryptocurrencies. Imagine the risk of having a public coin that has been used on liquidated New Zealand’s exchange Cryptopia in the past. A coin that could be prone to criminal investigations. Hence, it is highly recommended to keep privacy a priority.

  • Risks of Centralized Financial Surveillance
    The credit card companies, banks, and payment providers usually possess a full history of our transactions and they have the ability to censor payments for any purpose whatsoever. These gatekeepers are not just capable of unilaterally restricting payment in many cases. The governments who keep a check on everyone in the national interest can also scrutinize it. 

Users who do not have any previous criminal history are also scrutinized and their sensitive data is often compromised. 

Equifax reported a data breach resulting in the theft of 140 million social security numbers, credit cards and other personal information. JP Morgan had also fell victim to a cyberattack in 2014 where it put 80 million accounts at risk.

Cryptocurrencies are fungible. This could serve as an advantage and protect the information of users. Hence, in a society that is swiftly moving to cashless transactions, Bitcoin mixing process could be bliss. You can easily exchange cryptocurrencies without compromising your privacy, as your address would never be possible to trace. 

By trying Crypto Tumbler, you can easily protect your data and keep your transactions anonymous.  

 

23 Feb 2020
The views and opinions expressed in blogs are those of the authors and are not the official policy or position of ICObench. Any content provided by our bloggers or experts is of their opinion and they are fully responsible for it. ICObench is not legally responsible for the blog's content.



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