With the expanding paradigms of cryptocurrency and digitalization, privacy has become a critical problem, and it wouldn’t be wrong to say that privacy-oriented cryptocurrency has added expenses and stigma. In simpler words, privacy is important for an open society regarding the electronic age. Still, the privacy coins integrated with high-end privacy features aren’t perceived as they were intended to do.
Sure, it’s also about price, but there are various issues associated with adoption as well. Having said that, with the market becoming dark, everyone would expect the privacy coins to grow and spike up, buy Bitcoin on https://pattern-trader.app/ still remains the most preferred choice. According to research, less than 1% of the zcash tokens are private and shielded, but these coins’ transaction and user growth are pretty mediocre.
In simpler words, the privacy coins could grow better, and they didn’t, so what could be the reason behind it? With this article, we are sharing why privacy coins aren’t popular enough.
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Limited People Want To Transact In Privacy Coins
It is needless to say that there are people who want to keep their money private, but they don’t want to pay one another through privacy coins. This is because whenever people think about private cryptocurrencies, they think about Ethereum and Bitcoin, or highly secure stable coins. On the other hand, some very limited people want to settle their debts through special coins when their only important feature is being private.
For the same reason, the Ethereum-oriented privacy systems have gained more popularity. These systems are meant to bring in privacy where they are needed, particularly on smart contract chains and in the cryptocurrency that they will use, such as DAI, USDC, and ETH. In addition, some cryptocurrency exchanges have internalized the privacy costs on the users who care about their privacy rather than focusing on someone to bear the privacy costs.
Privacy Doesn’t Come Easy
With the evident history of HTTPS, it is needless to say that this hypertext protocol is being utilized to access every website. It teaches everyone that the public chooses privacy only when it’s easier for them. In addition, the website connections would only be used in plaintext form. In the beginning, HTTPS was only suitable for websites that were handling banking information and credit cards because these websites would be troublesome and slow.
On the other hand, HTTPS became the default option when the computation costs hit the bottom line, and every website could integrate without putting strain on the bank account. Similarly, with WhatsApp, the users managed to switch on end-to-end encryption without asking or consulting the users. All these changes were done to have better privacy for users on the internet, but none of them involved users making these intentional decisions.
Now, when it comes down to the privacy standards of cryptocurrencies, they require extra technical specifications and demand higher friction for protecting each other’s privacy. That being said, the advanced technology required to transact privacy coins is another reason behind slow adoption.
Low Demand For Privacy
When we talk about the failure of privacy coins, it is one of the most disastrous factors. It is important to check out the revealed preferences of the users who keep using social media apps after knowing that their data is sold to third parties.
For instance, the public keeps using Venmo that broadcasts the transactions and payments to third parties while they keep texting through SMS in plaintext. Even more, Telegram, Signal, and WhatsApp are free and use data.
In simpler words, social media utilization is incredibly high, and privacy is everyone’s priority. As we look at the economics rule, the public goods tend to be undersupplied by the free markets. Having said that, if only a limited number of users opt for privacy-oriented technologies, the technology will become stigmatized. At this point, there are two types of people – people who care about privacy and people who don’t, but the latter are more common, hence low adoption for privacy coins.
The Bottom Line
The bottom line is that the privacy coins are here, and to be on the safer side, it’s high time the user base understands the need for private digital currency because it all depends on the user’s adoption. So, would you invest in a privacy coin?
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