Topic: So how much privacy do we really need? - page 2. (Read 8595 times)

I think the government should be the one to implement the regulation of the use of bitcoins.  It is not far that bitcoins can be used for crimes, howbeit, the government should spearhead the security of using bitcoins.  Currency is the most liquid asset like fiat cash... I guess what you mean is security and regulation of using so to track down illegal transfer using this cryptocurrency...

We all know that Bitcoin transactions are not anonymous but pseudo-anonymous, resulting in many problems like tainted coins etc.
Some cryptocurrencies offer significant more privacy (Monero, Zcash etc) but at a cost.
However my question is more fundamental: How 'much' privacy do we really need for a widely-adopted cryptocurrency?
I believe Bitcoin as-is won't get adopted for everyday transactions. Nobody would want showing his buying habits to the whole world (imagine how many ads and flyers you would get).
On the other hand, I don't believe cryptocurrencies that offer too much privacy will get adopted either, since they will be used for criminal activities and eventually get banned.
My feeling is that we want a currency that offers privacy to some extent, without revealing our transaction to the world but still be possible for law-enforcement to track illegal activities.
What do you think?

So far I have seen some people arguing for 100% privacy, and some for (pseudo)privacy as it is now in bitcoin. (It is pseudo-privacy and not privacy, you can't be 100% anonymous with your transactions on a public blockchain free for anyone to view, no matter what tricks you use like Tor, mixers etc - if you are still not convinced there are several articles/academic papers out there that show exactly that).

I would suggest that to concisely answer the question, you have to look at the big picture, not yourself as an individual.

Let's say I am using fiat money. I get paid my salary to my bank account, I pay my bills, my doctor, I buy my vacation and my sex toys.
Q: Do I have the right to keep these transactions private?
A: Of course I do!  I don't anyone to be able to take a picture of my entire life just by looking at these transactions (not my friend, my neighbor, my employer or the government). Nor do I want to advertise my savings amounts to the entire world.
Q: Does bitcoin (as it is today) help me keep these transactions private?
A: No (see above). => Bitcoin as it is today can not be used as a total fiat currency replacement.

Now let's say I am an illegal materials/goods trader (drugs? child pornography? human trafficker?) or I am otherwise engaged in some criminal activity (money laundering? blackmailing? scamming?)
Q: Do I have the right to keep these transactions private?
A: NO. Authorities will have to suspend your privacy rights if you are suspect of taking part into illegal activities.
Q: Should authorities "unmask" your private transactions in such cases?
A: Yes. If you are part of an organized and lawful society you should think the same. If not, go find a place to live in some anarchist country on in the jungle with the monkeys.
Q: Can a 100% private - anonymous cryptocurrency (Zcash?) be auditable and accountable for such illegal transactions?
A: No. => Such a currency can not be used as a total fiat currency replacement.

Now you might argue that Bitcoin (or some other cryptocurrency) might not totally replace our fiat currencies but could somehow be a global-"subcurrency" that could be used for some types of transactions (e.g. capital transfer across countries). Such thing might be a possibility.
But those who dream ourselves living our lives only with cryptocurrencies, I think that a cryptocurrency that satisfies the properties "anonymous" and "accountable" will have to be invented first.

I added a poll to this post to see what your opinions are.

We all know that Bitcoin transactions are not anonymous but pseudo-anonymous, resulting in many problems like tainted coins etc.
Some cryptocurrencies offer significant more privacy (Monero, Zcash etc) but at a cost.
However my question is more fundamental: How 'much' privacy do we really need for a widely-adopted cryptocurrency?
I believe Bitcoin as-is won't get adopted for everyday transactions. Nobody would want showing his buying habits to the whole world (imagine how many ads and flyers you would get).
On the other hand, I don't believe cryptocurrencies that offer too much privacy will get adopted either, since they will be used for criminal activities and eventually get banned.
My feeling is that we want a currency that offers privacy to some extent, without revealing our transaction to the world but still be possible for law-enforcement to track illegal activities.
What do you think?

Actually that is the feature of Altcoin is offering although Bitcoin is somehow traceable (but likely hard for those have no idea how to use blockchain tracer) but they have their point that transactions should be made to become anonymous for privacy but on the other hand that's what cyber criminals wants.
States and government Regulations will do their part by regulating crypto currency that is legal to use to protect the public from crimes, scams and other interests.
That's why each country today are on their way to build guidelines and laws to protect their own economy like banning exchange and using Bitcoin for crimes.

Anonymity is not only for criminals and drug dealers. Anonymity is essential for everyday users, but is also required for businesses. Imagine a business buying and selling in bitcoin. I don't think if you run this business you would want your competitors to know how much you sell, how much you buy and who you buy from. The transactions can't be linked by a regular user, but they can by professionals.

I disagree with both of your predictions. The lack or abundance of privacy probably won't affect the adoption, since Bitcoin is private enough and if you are careful you can reach a near perfect privacy, but you can also reach complete transparency if you desire so, it is completely up to the user.

Bitcoin is supposed to be used in way that you use different addresses for every transaction for security and privacy so there shouldn't be any problems with the lack of it. While other more private cryptocurrencies won't get banned either, since that is near impossible as well, it is hard to ban something that is decentralized and ever adopting like that.

I don't see a reason why we wouldn't have a soft-fork down the road for adding confidential transactions so people can use them if they want.

yeah i agree that it really depends in the persons activity , if hes doing illegal activities like buying drugs, carding, hacking and scamming people then he really needs some serious privacy or anonymity but if hes just an average joe that dont do monkey business then it doesnt really matter and i believe most of the people are not botherd about this issue.