Should the Anonymity Around Cryptocurrencies Be Erased?

Should the Anonymity Around Cryptocurrencies Be Erased?

Bitcoin and other cryptocurrencies are not yet mainstream. It has started to be implemented in everyday sales but, it is not yet the norm. People still prefer to conduct their financial transaction with the help of fiat currency. But, there is no denying that as time moves forward, one shall see a massive change in this trend. For that transition to occur, there are many factors or hurdles that will be needed to be overcome. Primarily, anonymity, that is often related to anti-social activities that need to be stopped!

But, is transparency in this decentralized ecosystem really worth the hype? To answer this question, one needs to ask, the following set of questions. Cause only with these questions can we unearth the answer.

  • First of all, how does anonymity of an individual come into play in regard to cryptos?
  • What factors lead to people preferring to create an anonymous Id?
  • Why is anonymity the name of the game in the crypto world?
  • Isn’t it courting trouble when one blatantly displays their wallet ids?
  • Will one get any benefits by flashing their Bitcoin wallet ids to all?
  • Is it worth it?

Cast aside all doubts and read on.

Anonymity: A Means To The End

First of all, to answer a burning question that is on the mind of everyone who wants to deal in cryptos, how does anonymity of an individual come into play and what factors lead to people preferring to create an anonymous ID? Well, to answer this question, one needs to know about how a Bitcoin wallet is made. Ideally, Bitcoin are to be mined. In that case, one needs to only create a wallet on which the entire Blockchain has been saved. But, with more and more people buying and investing in Bitcoin and other cryptocurrencies, exchanges for the same have cropped up all over. Due to heavy government rules and regulations, one needs to be have utter transparency when openings one’s wallet or account to transfer fiat into or to vice versa. In such scenarios, there is no chance of trying to keep one’s id a secret.

Why is anonymity the name of the game in the crypto world? Many individuals realized the potential of Bitcoin and other cryptos much before the boom of December 2017. Due to this, they have traded, mined and accessed their cryptos hidden away from the government radar! This led to many creating accounts and  wallet ids with fake names and locations. But, one must always keep in mind that those who want to trace your wallet can do so, simply by tracking your fiat account and the transactions undertaken from it towards crypto exchanges.

There may have been a time when one would think that their wrongdoings could be gotten away (similar to the infamous ‘Silk Road Company’ which was the first modern darknet market that dealt in drugs and other vices) with the shield of anonymity. But, now, the tables have turned and it is no longer possible to remain completely off the radar in this decentralized ecosystem. (Unless you are Satoshi Nakamoto himself)

Moving on to the next question, isn’t it courting trouble when one blatantly displays their wallet ids?  Will one get any benefits by flashing their Bitcoin wallet ids to all? Here too, the answer lies in the misconception and ignorance that has carried on from the time of Bitcoin advent. With encryption, cyber protection, the option of switching from hot wallet to cold wallet, and even making accounts with highly fortified crypto exchanges, there is no guarantee what may happen in the next minute. Mt Gox was the most secure and probably the biggest crypto exchange of its time. If that can be hacked into, there is no guarantee on the security of your exchange. As far as benefits are concerned, one can easily ask for donations, or sponsorships from individuals or universities by simplifying displaying your Bitcoin wallet id. (mind it, it is advisable that if you already have a large number of coins on your Blockchain, you save them in a cold wallet for added protection or in a separate wallet altogether.)

Verdict: Be the Lightning Before the Thunder!

Finally, we come to the one question that makes us stop and think. Is it worth it? The answer to this question is a conundrum. While increased transparency may lead to faster acceptance of this virtual currency, by maintaining our identity, we ensure our wallet and in turn its Blockchain’s safety. So, how is one to decide? They can do so if they put in a little extra effort. By mainlining cold and hot wallets and maintaining separate bank accounts from where in they keep day to day living expenditures separate and and crypto related expenses separate then definitely one must break away the chains of anonymity and bask in the glory of being trailblazers in this decentralized ecosystem.

Also Read: Impact Of Cryptocurrencies Over The World

A traveler who has eaten with Bedouins, gotten lost in mist, and walked a kilometer to get net connection. When not writing, Nisha reads tech magazines to shampoo bottle labels

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