In a digital era where privacy and the safekeeping of personal information are gaining increasing importance, how do cryptocurrencies fare overall? This is very important to note when talking about the most popular cryptocurrency, Bitcoin, which uses blockchain technology as an accountant of transaction data.

While it is true that digital black markets (ie Silk Road) damaged Bitcoin’s reputation, the Bitcoin network is still a very secure and private way to transact without divulging too much private information. Here are some facts which can make you more aware of why it is considered to be the future of money.

The Unbreakable Shield of Blockchain Protecting the Privacy of Bitcoin Transactions

Privacy in fiat transactions is generally so weak that almost anyone can obtain private information about a transaction, including the identity of the entities involved, and the amount of money that has been transacted in the process.

While this may be beneficial for governments and regulatory bodies, individual rights to privacy can be easily compromised.

Bitcoin transactions powered by blockchain technology are devoid of such privacy concerns. While blockchain transactions may be a slower and more time-consuming process (the Bitcoin network processes between 3–20 transactions each second), blockchain enables transacting at a high level of anonymity.

Many people complain that the high level of privacy involved in Bitcoin transactions is illegal — they’re wrong. In fact, the way blockchain records transaction data might be the most desired way to collect information of financial transactions.

The point to note here is that every Bitcoin or blockchain transaction contains two types of keys — private and public. While it is clearly possible to record the value of transactions via the public key, the private key makes it impossible for anyone to decipher who made the transactions.

For example: while you may know that Party A has transacted N amount of money to Party B, you can never find out how much wealth Party A and Party B have in their respective accounts.

Though at first sight this can be seen like a useful method for avoiding taxes, blockchain can actually be used to reduce financial fraud around the world. This is one of the most notable advantages for Bitcoin enthusiasts wanting to remain anonymous.

Impossibility to Identify the Seller and Buyer in a Bitcoin Transaction

One of the most notable attributes of blockchain technology is the fact that it allows you to remain anonymous while buying or selling the world’s most popular cryptocurrency.

This is a problem for law enforcement, seeing as Silk Road drug dealers were some of the first adopters of Bitcoin payment. Additionally, many people who are actively identified in most contemporary fiat transactions fall prey to the unwanted attention of financial hackers and illegitimate fraudsters.

This can invite great troubles unknown or unseen by the financial world until now. The threat of hacking or financial fraud is more dangerous than the anonymity of Bitcoin trades, a fact that has been increasingly accepted by the mainstream financial world.

While the anonymity does have some disadvantage when it comes to controlling financial irregularities, the anonymity of Bitcoin transactions is one of the greatest advantages for anyone who might be interested in protecting his or her identity when a large transaction is carried out.

Staying anonymous while transacting money legally is a right, and must be allowed by all financial regulators irrespective of the geographical or personal attributes of the entities involved in the transactions.

The Immutability of Blockchain

The anonymity of Bitcoin transactions can be a concern to regulators who are seeking to prevent criminal activities. However, blockchain’s immutable nature means that each blockchain-based ledger is unalterable. Once a financial transaction has occurred over a blockchain network, it is impossible to remove or change any detail which was part of the transaction.

So, if you think that anonymity associated with Bitcoin transactions could attract criminals, consider that no unethical transaction would ever go unnoticed or erased later on when it occurs in the blockchain and a public key is associated with a crime.

If you still have any doubt why Bitcoin is taking the world by storm, do your research — make a cup of coffee and start learning about the crypto revolution right away.

About CINDX

CCINDX is an investment platform that allows individuals to combine several crypto exchange accounts into one trading terminal, and gives them the option to connect to the best managers without having to transfer their funds. Moreover, implementation of blockchain-based transactions will allow the trading history to be saved, and a rating system will be used to differentiate the successful managers from the less successful ones.

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