With the way countries are opening their doors to cryptocurrency, one may not be wrong to say that global cryptocurrency adoption is closer than we think, and only those who position themselves early will benefit hugely from it.
At first, governments of various countries weren't comfortable with the whole idea of cryptocurrency but after they have seen huge adoption from citizens and the potential in the digital monetary system, they have no other option than to seek a neutral ground where everybody will be happy. This is why we witnessed a cryptocurrency regulation campaign today.
With El Salvador leading the way for cryptocurrency adoption, it will be a matter of time before we see more countries following in their footsteps.
Now, one of the challenges facing global cryptocurrency adoption is the Anonymous nature of cryptocurrency, where transactions are public but the identity of the person behind the transaction is hidden. It has been the basis of the government's rejection of this decentralized financial system, cryptocurrency. This is why governments have placed KYC verifications as criteria for exchanges to operate in the country.
When cryptocurrency adoption began to increase, people saw that the decentralized financial system is deficient. The deficiency can be traced to the fact that transactions are open, leading to a loss of privacy. There was an introduction of a new blockchain that promotes privacy. Here transaction details are only available to the sender and receiver, and perhaps any other person that has been given the transaction details. Many privacy coins came into the digital world and people welcomed them with open hands. Not quite long after the adoption of privacy coins, the governments started giving strict guidelines against the mining and use of privacy coins. Soon, exchanges started delisting some of them, and their trading volume began to reduce. Nevertheless, some of them are still doing very well in the digital market today, perhaps because the governments have not been strict with them lately.
With the possibility of global cryptocurrency adoption in the few years to come, one may wonder about the fate of these privacy coins like BEAM, DASH, MONERO, etc. Will the government permit the co-existence of privacy coins with coins in the open blockchain? What will be the fate of projects who have dived into the private blockchain should the adoption of cryptocurrency reignite the concerns over privacy coins?.
For me, it is all about putting the right measures. One thing I am certain of is the fact that global cryptocurrency adoption will come with a strict regulation that will link wallets to owners. There will certainly be a way of tracing transactions. This is the only way the government will feel comfortable with it. Having both investors in public Blockchain and Private Blockchain undergo wallet verification should be fair. With this, people will have two options, either to carry out transactions using the public blockchain or have their transaction details hidden. The beauty of the latter is that it helps to protect wallet owners from possible attacks because their wallet balance is not openly available. It can also help reduce FUD when there is a heavy sell-off of a particular token.
I have a privacy coin in my portfolio and am going to hold onto it because I believe that time will expose the importance of these privacy coins when it comes to the security of investors. Feel free to drop your contribution or perhaps criticism.
Generally, this anonymous nature of cryptocurrencies is what made government of various countries still reject cryptocurrencies but beyond that I think their inability to tax the activities on crypto is also a contributing factor and that's why most of them have gone with creating a digital currency which gives them this advantage of monitoring and control this currencies by the various central banks.
I stand for the privacy the blockchain technology brings. All currencies has its pros and cons but crypto currency brings about much need freedom which I like and support.
I agree with you on this. Their quest to tax cryptocurrency has started with the exchanges. They have demanded KYC verification from them and this has been a tool for them to monitor their citizens.
The speed with which Cryptocurrency has been largely accepted is beyond me. It took government enforcement for many other means of exchange to be globally accepted. Gold, fiat...all took time and largely had the backings of government. Cryptocurrency was by the people and was fought for a long time and is still being fought, but guess what...I believe it'll win. I just hope the idea doesn't change too much for the worse.
I am not a proponent for this sort of privacy though. Then again my anonymity on Hive means I shouldn't be allowed to question anyone's need for privacy. Hehe
Is Hive anonymous? Have you considered the fact that the ability for one to be able to see your wallet balance by scanning the explorer with your username can make four accounts a target for phishing activities?
That's true. And I understand the concept of privacy. Bitcoin has some things to do.
My knowledge on crypto is limited, but thanks yous who post about it, I'm learning.
Brilliant post my friend🤗💜