Here are 5 reasons why your favorite anonymous CryptoCurrency isn’t so anonymous:
CNN Repeatedly Says It Is
A very easy way to figure out whether your favorite coin is anonymous or not, is to see what the reliable news source, CNN, thinks about it. If you see CNN anchors freaking out about it, screaming it is anonymous, it actually isn’t. Hate to break to you but CNN, much rather riled up an audience of old people with nothing better to do than worry about new technology, than report real news.
It Got Featured On Wired.
Wired dedicated an article to Darkcoin, a leader of the anonymous crypto-currency space, declaring the war over and cyber criminals as the victors. The main thing that caught Weird’s attention was price, but they intrigued by the mixing technology behind the coin’s main selling point. While the price rose to double digits after the article, it crushed not too long after. The reason being is Darkcoin’s prime feature, masternodes, failed (and then failed, again) when it was implemented for the first time.
While, the article may good news for the coin’s popularity, it does not mean that when the FBI or NSA come searching that it is going to protect you. Following the sheep jumping off the cliff, screaming that they can fly, doesn’t mean they can (or that you can).
Users Of The Coin Don’t Care About Anonymity But Rather Pumping And Dumping
Be wary when the prime focus of the forums and discussions are about the price, rather than the anonymity. It can still be flawed if the discussions are about anonymity but seeing how the new features will increase the price.
Altcoins, which all anonymity focused coins fall under, are the penny stocks of the digital wild west. Everyone wants to be crypto-millionaire, hoping for the same vast wealth the early adopters of Bitcoin had. It is a self-filling prophecies on a scale and complexity rarely seen. Though, being popular and valued is important for a healthy coin, the prime focus of a coin promising anonymity should be, just that, anonymity. Anonymity is a rapidly evolving field, where mistakes could mean life or death for someone and that is why it is something that shouldn’t be thrown around lightly.
The Technology Is So Innovative It Can’t be Explained
It on always a good idea, and I would say a must, to understand the technology behind the coin before buying or supporting the coin. It is also really important to see the level that average supporter or user understands of the coin. A good way to do this is do go on the forums and ask about the coin. Going to the dev or other technical threads might warrant the answers you are looking for, but it leaves out the lay user (and more common user).
Time and time again, I have experienced that the average user of many coins (particularly anonymity focused coins) not understanding the technology they are rooting for. It is like the Dogecoin community, but they instead of a joke internet meme coin, they are taking about a unprecedented step in human freedom.
Analyze their answers and really investigate to see if they answered your question or blew it off with mystical nothings. Do they appeal to emotion, rather than logic? Does it sound like exactly what you wanted to hear? More likely than not, it is hot air and with not nothing backing it so be skeptical.
It isn’t Open Source But “It Will Be One Day”
Anyone who knows anything about cryptography, knows that if it isn’t open source it isn’t good crypto. Without transparency and being able to review the code, users can’t know if they are actually be protected or if their sensitive info is out in the opening. Closed source cryptography can be the best crypto in the world but without seeing the code that means nothing.
Many crypto-currency devs know the public’s skepticism toward closed source software which leads them to create excuses for it being closed source. Many say they want to avoid clones or that it isn’t ready yet. Valid or not, in the world of security and anonymity, these excuses fall short. You aren’t using cryptography because you just feel like it, but rather to hide very private data and if you are read DeepDotWeb regularly you probably know by now that failing to protect this data might get you in jail.