Bitcoin vs. Privacy Coins (Monero, Zcash)

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In this video, I discuss the problems with privacy coins like Monero and Zcash, and why Bitcoin has opted for not enabling true privacy at the base layer.

Privacy at the base layer (blockchain itself) is not a good thing to have.

1) Wall Street, banks, and custodians will never adopt privacy coins– it’s too difficult from a regulatory perspective. This means you will never get large flows of money going into privacy coins from institutional investors– unlike Bitcoin.

2) Privacy at the base layer makes it impossible to audit the base chain for inflation bugs. You cannot have a reliable store of value if you cannot keep track of the coin’s money supply.

The Bitcoin base layer (blockchain itself) optimizes for decentralization and verifiable scarcity. Privacy solutions and speed solutions belong on Layer 2.

Not investment advice! Consult a financial advisor.

Monero:
https://www.getmonero.org/

Zcash:
https://z.cash/

Stellar inflation bug:
https://www.theblockcrypto.com/linked/17389/report-stellar-suffered-a-2-2-billion-xlm-inflation-bug-in-2017
https://cointelegraph.com/news/stellar-patched-an-inflation-bug-and-burned-the-resulting-225-billion-xlm-research

Bitcoin inflation bug:
https://decrypt.co/39750/184-billion-bitcoin-anonymous-creator
https://en.bitcoin.it/wiki/Value_overflow_incident

Monero market cap:
https://coinmarketcap.com/currencies/monero/

Zcash market cap:
https://coinmarketcap.com/currencies/zcash/

Bitcoin market cap:
https://coinmarketcap.com/currencies/bitcoin/

Privacy and the Lightning Network:
https://medium.com/suredbits/lightning-network-101-privacy-245d98210ab

Christine Lagarde convicted:
https://www.independent.co.uk/news/world/europe/christine-lagarde-convicted-imf-head-found-guilty-negligence-fraud-trial-a7484586.html

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I am not being paid or otherwise compensated by any company or cryptocurrency project that I mention in my videos.

My opinion is not for sale. Please do not contact me with any affiliate or advertising deals.

#Bitcoin
#Monero
#Cryptocurrency

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Bitcoin vs. Privacy Coins (Monero, Zcash)

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Kane Dane