Thu, Nov 16
"You're exposed!" That's the thought that crosses my mind when using blockchain networks like Bitcoin, Ethereum, or any that lay bare all my financial information. It might seem exaggerated or even unimportant, but it matters because, if it weren't everyone would know how much money each of us has stored in the bank.
However, it's not that simple, and financial information is private, deserving the utmost respect.
Let's analyze what I've said so far with the security of every person holding money in the blockchain. Fast forward to 2030, and the network is so widely used that everyone knows which address belongs to whom. It might sound impossible, but it isn't, thanks to the KYC (Know Your Customer) policy, used by many exchanges and governments to associate identity with a cryptocurrency address.
As a result, criminals are on alert, and every holder of a public address is in constant danger. After all, everyone knows how much the client has, when they moved it, what payments they made, and how much is still stored. This can lead to robberies, kidnappings, and various other crimes by neglecting financial privacy.
Financial privacy should never be overlooked. Those who do may find themselves vulnerable to all kinds of dangers, including government scrutiny, as they might deduce taxes on the cryptocurrencies you own. What's the advantage of using a decentralized money ecosystem then?
Financial exposure is risky, and those who don't think so should reconsider. Coins like Bitcoin are subject to this exposure, mainly due to their open blockchain design. While not necessarily bad, it's a real concern for those who prioritize privacy above all. After all, it should only show the information one desires.
Comparing, for example, ZCash (ZEC), a private, anonymous, and secure coin by design, with Bitcoin reveals differences that make users ponder. Both ZCash (ZEC) and Bitcoin have a definite supply of 21 million coins, meaning neither will suffer inflation.
However, they differ today in price and privacy. While ZCash (ZEC) still has spectacular price potential, Bitcoin is already overvalued (and few can benefit) but lacks the privacy required for smart money. The differences are clear and indisputable, subject to those who invest in them.
Therefore, for those who know what they want and value privacy, Zcash (ZEC) is the right choice. But for some following the crowd and caught up in market hype, Bitcoin is their pick. Will they choose wisely? That's a question answered by each individual who decides to invest in it.
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