Reasons Why Privacy is Important with Cryptocurrencies
The decentralized computer network that we know as bitcoin is hitting new highs in the summer of 2021. In fact, it is now headed in the right direction to make this world an easier place to engage in business. Before your business decides to go cashless and starts accepting bitcoin as a method of payment, make sure you’ve done enough to keep your transactions secure.
Here are a few reasons cryptocurrency privacy is important:
You don’t want to end up in undesired situations
One of the best aspects of investing in bitcoin is that all the transactions are hundred percent traceable, and the records are publicly available. This is because they also get stored in the bitcoin network. The kind of information that you need to keep the transactions going is stored in the form of bitcoin addresses. When you use these addresses, all of the histories are trapped. We are living in times where data intrusion has become a sizeable concern. This makes your transactions more prone to data leaks.
Stay safe from criminal intent
The underlying logic is simple. If you own 100 BTC that is worth $380,000 on a certain day, you don’t want someone knowing that you have $380,000 with you. You don’t want a criminal or a potential fraudster to sniff that kind of a thing.
They would do anything in their capacity to milk you for it. The easy way out is that no one needs to know that you have got 100 BTC on your address. The truth is that no one can see this money at your address unless you tell them. Bitcoin doesn’t release metadata and promises complete anonymity. Stay safe from the curious eyes of a criminal.
If you’re a company that is currently in negotiations with your business partners and stakeholders and pays with cryptocurrency, you need to be extra vigilant. You don’t need a middleman knowing what you’ve got in your digital wallet and what you intend to do with it. If the other party is aware of the exact amount of money that you have, it’ll become difficult for you to negotiate your position.
The same applies to a private individual who is trying to negotiate with a lender and battling it out for a lower rate. It’s always a good idea to keep your assets disclosed. The good news is that public crypto addresses are anonymous and pseudonymous. This is where your financial privacy also comes into play.
The risk of being blacklisted
Cryptocurrencies are traded over multiple exchanges. For instance, if your coin has been used on a previously liquidated exchange in New Zealand, you could be at a risk of facing criminal investigations. To be safe, it’s always better to maintain your privacy.
Centralized financial surveillance
Whether you’ve applied for a loan or are going through some sort of financial clearance with a bank or a credit card company, they’ll always have full access to your transaction history. This enables the payment provider to censor your payments.
In this case, the payment provider or the bank is more like a gatekeeper who can unilaterally restrict your payments. At times, even the government can scrutinize your transactions to keep a check on everyone for the sake of national interest.
Companies like Equifax and JPMorgan have reported huge data breaches in the past because victims succumbed to cyberattacks and their personal information was at stake.
With cryptocurrency, you have the added advantage of exchanging bitcoins without compromising your privacy. This is because cryptocurrencies are highly fungible. They make it easy for the society at large to move to cashless transactions.
Most importantly, it’s not necessary to have a reason to keep your data and transactions secure. Even if there is no criminal intent behind the transactions, it’s your right to keep your private transactions safe and secure. Protecting your data is important even if there is no obvious threat.
Are you trying to invest in cryptocurrency and don’t know how to go about it? The easiest way to go about is and secure your transactions is to stay well-informed about your next move. This is why we recommend staying tuned to credible and updated information sources like Urban Crypto.
Urban Crypto is your number one source for all the latest cryptocurrency-related news, updates, tips, and guidance. The blog is an excellent beginner’s guide on how to invest in cryptocurrencies and make good profits. We have simplified the world of cryptocurrency for you.
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