Monero (XMR) News – Is Monero’s anonymity a double-edged sword?

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When you’re looking for cryptocurrencies to transact invest, 1 point which will always come across is whether the cryptocurrency is transparent or whether it allows anonymous transactions. Depending if you are trading or if you are a long term investor, you might prefer one cryptocurrency over the other. If you want to transact, you might try to use a transparent cryptocurrency unless and until you’re doing something shady. Similarly, if you’re looking for a cryptocurrency to invest in, you might go with the anonymous cryptocurrencies since their use is increasing at a rapid pace.

Hence, the argument between the anonymous and the transparent cryptocurrency will continue for a long time. We all know that Monero (XMR) is one of the very few genuinely anonymous cryptocurrencies. The technology behind the blockchain is such that it is not possible for anyone to tame the usage of the cryptocurrency. It was however expected that developers might try to make it more transparent to meet the regulatory requirements. In recent news, it does not seem to be happening.

Is Monero’s anonymity a double-edged sword?

A core developer of Monero (XMR), Riccardo Spagni, recently stated that privacy was one of the main reasons why he got involved with Monero (XMR). He clearly said that the coin focuses on privacy and it is entirely a permissionless network. The developers or anyone for that matter cannot control who uses the interface and who cant. That is why it seems like taming the Monero (XMR) network is not on the agenda at all. We all know that the use of Monero (XMR) is increasing due to anonymous transactions.

It seems like the core developers support this opinion. If the core developers are supporting this opinion, it is doubtful that any modification in the future will reduce this privacy. Moreover, the whole blockchain of Monero (XMR) provides that anonymity. Without that anonymity, it can be just another cryptocurrency. That is why it will have to compete with most of the other cryptocurrencies to gain traction. It will lose its only advantage.

Monero (XMR) is taking a risk:

Even though you might think that Monero (XMR) should not reduce the anonymous transaction privilege, but there is a risk for Monero (XMR) investors. Most of the cryptocurrency exchanges are only listing the transparent tokens. Monero (XMR) has been delisted from some of the cryptocurrency exchanges in the past one year. If the cryptocurrency exchanges decide to stay away from anonymous cryptocurrencies, it will be tough for Monero (XMR) to gain any traction. On the other hand, an argument that with the volumes increasing, the actual use of the cryptocurrency is going up. However, it will be tough for investors to invest in Monero (XMR) as an investment.

That is why, even if it continues with its anonymous nature, there can be a risk for Monero (XMR) investors. The risk will be associated with liquidity and credibility rather than anything else. Thus, while it is clear that the Monero (XMR) network will not be deemed but you need to keep the risk in mind if you’re thinking of investing in the same.

About Priya 119 Articles
I am an IT engineer by qualification and like to explore the crypto and blockchain space in my free time.

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