This is my part four on my series about privacy coins. In no way do I think that I covered everything that deserves to be said about this topic but I hope it get's people thinking. For greater context please read Part One, Part Two, and Part Three before reading this article.
My first article I explained what a privacy coin is, the second article I explained the benefits of privacy coins, and the third article I explained their downsides. I tried to remain neutral and I hope I did. Now I will reveal my actual thoughts.
Outlawing Privacy Coins is Pointless
As the saying goes "the genie is already out of the bottle". Millions of people already know they exist and hundreds of developers have already contributed to these projects. If governments outlaw them all it will accomplish is another "War on Drugs" or Prohibition. Unless a country is willing to practice what Singapore does (execution of drug offenders) there is no way it will win a war on privacy coins. All that will happen is that privacy coins will get pushed even further into black markets and dark web madness. Since they will be illegal, criminals will be even more motivated to program them in such a way that nobody get's caught. If you corner an animal it only fights harder. Leave it alone and it won't threaten you.
Outlawing privacy coins will accomplish these things:
- Raise the successful privacy coins value for illegal purchases
- Make a specific currency for black market purchases
- Make certain that only criminals hold privacy coins
- Take away privacy coins from law abiding citizens
In other words, we will have all of the problems that privacy coins bring to society (found in article three) without any of the benefits.
Teddy Bear?
Or Grizzly Bear?
Now that governments are learning how to track Bitcoin purchases and hack privacy coins they will be "tempted" to spy on their citizens. This is what governments and big government advocates don't get. Our current cryptocurrency system is a Teddy Bear compared to what it could become. If criminals need to be found they can be found. If massive fraud is taking place it can be dealt with. But if governments squeeze too much an element of the cryptocurrency movement most people don't like will come to the foreground.
People got into cryptocurrency to have freedom from big banks, and big government. If this freedom is undermined it will be taken back and the cryptocurrency movement will change from a Teddy Bear (which is what it currently is) into a Grizzly Bear. The good hearted people will get pushed out by the government and the criminals will stay and make privacy coins in their own image. Therefore, I think it's important that privacy coins remain legal and that governments let crypto remain free. Otherwise, governments will find themselves fighting a war they will lose (like the War on Drugs) and spend billions of Dollars in the process.
The Irony of Privacy Coins
The people who need privacy coins the most will be those who live in countries that will outlaw them. The people who need them the least will will live in the countries that allow them to remain legal. Just like most freedoms; it's only needed after someone has taken it away. However, countries that are free will have the most privacy coin development that could assist people who live in totalitarian states. The free people will benefit those who need it the most.
Digital Cash
Society has existed for hundreds of years using cash. Governments were unable to watch all of their citizens spending habits and corporations couldn't just spy on their customer's bank accounts. Not until the last 30 years has the idea came about that the government should know everything that's going on. Society flourished without government financial snooping; why can't it flourish without it today?
Buying a Hotdog
Why would a normal citizen want privacy currency? The answer is simple. If I buy a hotdog from a fast food restaurant I shouldn't have to worry about the hotdog vendor knowing my whole financial record. Today, if I bought a hotdog with Bitcoin that's exactly what could happen. With Monero the hotdog vendor would only know that he received some Monero. And if we leave backdoors open for the government we leave them open for the criminals too. I want digital cash to succeed. Who's with me?
