Bitcoin has a fatal flaw.
And that flaw is that it’s not private. In fact, it’s completely transparent, meaning that all of your transactions become public knowledge.
And if you read my last email/article, you know how dangerous that flaw is.
Because when all of your assets and transactions are public knowledge, the Government can crack down on your accounts.
That’s exactly the opposite of de-centralization.
But there’s a great way around it.
And before I get started on this article, I just want to be clear. This is not financial advice, and I have no financial motive for writing this. This article is for educational purposes only.
Monero, also known as XMR is a privacy-oriented peer-to-peer crypto currency. It’s designed specifically to be untraceable and anonymous.
One of the benefits of Monero is that it’s a fungible cryptocurrency.
Basically, that means there’s no way to distinguish one Monero Token from another. Whereas Bitcoin is non-fungible. Meaning that you can distinguish two different Bitcoin tokens from each other.
This is important to privacy because if there’s no way to differentiate the two coins, there’s no way to tell where they came from.
It’s like if I put a penny into a bag full of pennies, shook it up and poured it out. You would not know which penny was which.
But it doesn’t stop there. Monero uses two core tools to remain private.
The first tool is something called “Stealth Addresses”.
Basically, it allows users to create a random one-time address for every transaction. So, by using a stealth address, only the sender and the receiver will ever know where the payment was sent.
The second tool is something called a “Ring Signature”.
Basically, when you’re trading with Bitcoin, the recipient of the trade has a key, and that key confirms that it is the correct account to deposit the money into. That key can be tracked. But when it is done through Monero, it uses a giant group of keys from all over the world, and only one of them actually works for it. This obfuscates the data because there is no way of seeing which key actually received the Monero, making it untraceable.
Monero is great, and there are a lot of other great privacy oriented crypto currencies as well.
Pirate Chain, and Dero are other good privacy crypto currencies to look into.
It takes a lot of work and knowledge to start your private crypto journey. You will have to set up your own private wallets, use non-KYC crypto exchanges, and you need to be diligent in the information you’re putting out.
I wouldn’t recommend it if you are not too tech savvy, maybe I’ll go into more detail in the future with how to get set up privately with crypto.
But once you have Monero in a private wallet, you are pretty set. Because Monero is private by default.
Let me know if you want me to go into more detail about private crypto in the future.
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Thank you!
Eric Meder