What is privacy coins?
We all know the fantastic blockchain tech, and how it has helped a lot of people to interconnect over the entire world. Making payments as fast as you can count, sending funds to a dessert in africa without a bank. This is truly a revolution of the 21st century. Lately a lot of new crypto currencies have emerged that call themself privacy coins. That is coins like monero, dash, zcash etc.
The problem
But I thought that my bitcoins was private? I meen who can know that I own 1M3toXTFBe6TYX7mt1M4epszDh87Gfo6C1 ? Well nobody can know that untill you use/move the coins. When you move them or use them or convert them to fiat, you will leave a digital trail after you. This trail can be followed.
The real problem is that when crypto will gain more momentum, and more people will use it, the governments will loose control over funds and eventually taxes. They will do A LOT of work to find and trace you down for just holding bitcoins. The government's powers are practically unlimited. If they encounter a wall, they will just make a law that can make them penetrate that wall.
The difference between privacy
This is why privacy oriented coins have emerged. But those initial coins are not so anonymous that one might think. They all operate over the normal internet. To avoid a technical explanation, all you have to know is that anything you do on the internet, is stored and can later be fetched by governments to accuse you.
So all these coins invented one privacy mechanism after another, but it will never stop the governements from seeing who you are because of your connection to the internet. Your IP will reveal everything you do. The governments will inject so many computers/masternodes into all crypto currencies to log who is using and sending what that you will be exposed.
DeepOnion is the solution
This coin, $ONION, is the answer. It operates over the TOR network, thus hiding your real IP. Surely the government will also infiltrate the TOR network (or allready have), but it's a lot more secure than using monero, dash, zcash etc. Combine DeepOnion with a VPN, and you are practically secured.
Can't wait to hear your thoughts on this.
Privacy is the main reason I decide to invest in DeepOnion. I think privacy orientated coins will grow a lot.