Private cryptocurrency can benefit not only criminals.

Virtual currencies with a high level of privacy are subject to more close attention due to an increase in cases of their use in the shadow sector. Law enforcement agencies and financial regulators are concerned that anonymous cryptocurrencies potentially facilitate the financing of terrorism and are a way of money laundering. Japan, for example, has already forbidden to trade with such coins on local stock exchanges. In the article, we looked at why confidential coins are intended not only for criminals, and what advantages can be obtained.

Personal safety

Wealthy cryptoinvestors are increasingly faced with the problem that their digital wealth is in open public access at the blockchain, if any of their wallets are associated with identification data. This creates a risk for personal security, as criminals can track and pursue them trying to steal virtual assets by hacking digital devices or physical violence.

In 2018, many cases were recorded when attackers used conferences and public events to find rich victims. One of the main methods of theft was hacking mobile devices in order to obtain private information for direct theft or extortion. At the beginning of the year, many cases were recorded when criminals had a physical impact on the owners of the virtual state.

The use of confidential cryptocurrency, such as

Financial business confidentiality

Companies already working with cryprocluts can also partially or completely switch to anonymous coins. In business, financial confidentiality plays an important role. For example, if the company accepts payments to

This may negatively affect the relationship. Customers will begin to demand discounts, seeing smaller transfers from other counterparties. Suppliers can also use bitcoin blockchain public information to increase their prices if they learn about cash receipts, testifying the success and high performance.

The use of anonymous coins does not allow the third party to track incoming transactions. This allows you to avoid many potential problems with counterparties.

Lack of «dirty» coins

Conventional users are cryptocurrency, especially those who actively trade them can inadvertently become the owners of «dirty» coins that were previously used in illegal transactions. Such assets of the exchange are often entered into a «black list», which can significantly complicate their sale and storage.

Ultimately, «spoiled» coins may depend on users who have nothing to do with illegal activities. However, the impossibility of selling is not the worst outcome. In some cases, such assets can attract the attention of law enforcement agencies to which the owner will have to explain how they have turned out to be.

When using confidential cryptocurrency, such situations are excluded, since funds cannot be identified, which guarantees the absence of a «black list» and «dirty» coins.

Financial collection prevention

The FSB is not an organization that is engaged in mass collection of data. In fact, this niche belongs to technical giants, such as Google and Facebook. For them, collecting personal information and its sale of the third party is an integral part of the business model. Often this happens without the knowledge and consent of users. The scales and the consequences of this were reflected in the recent scandal with Facebook and partially stipulate in the new EU laws.

Despite individual defenders of privacy, which are trying to fight mass collection of data, recent events show that this trend will only increase as the influence of new technologies, such as IoT, to our lives. Of course, the corporations and governments are primarily interested in financial information that allows us to analyze our behavior.

Although the transactions of Bitcoin and other transparent coins are much more difficult to track than bank transfers, but they provide the ability to collect data. Researchers and state structures successfully apply various methods for analyzing blockchain and clustering addresses to monitor displacements of funds. Confidential cryptocurrencies make it impossible.

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Individuals and entrepreneurs who want to provide financial support to dissidents or countercultural groups in the economic, social or political sphere can direct their donations in the form of private virtual currencies. They provide a sufficient level of confidentiality, which will protect against subsequent persecution by the authorities.

An example is the Edward Snowden Protection Fund, which began to take donations in

However, if the Foundation initially received confidential cryptocurrency, then no one would be at risk. Edward Snowden himself positively responds about Zcash, calling the project with the most impressive altkoin and began to take donations in it.

Personal financial independence

When using cryptocurrencies, people do not need to worry about the possibility of closing a bank account, freezing funds, system failures. Such situations arise much more often than many of us think. This is due to the tightening of banking rules and the complication of internal interactions.

Of course, given the current high level of volatility of popular virtual currencies, it would be unreasonable to keep all its capital in this form. However, obtaining complete confidentiality and absolute control over the part of its funds is significantly expanding human capabilities.

Bitcoin also provides potential anonymity, but in reality the MTS can be relatively easy to tie with real owners. Confidential cryptocurrencies in this case provide more financial independence than digital gold.

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