Why tools are needed to keep Bitcoin private

While bitcoin does have relative anonymity when transacted, a determined third party can usually trace the transaction and find both the sending and receiving wallet addresses. However, tools are emerging that will allow users to keep their bitcoin transactions secret. 

Contrary to what many mainstream media channels would have us believe, bitcoin transactions are far more traceable than cash. Therefore malicious actors are very likely to keep on using cash for their malpractices, given that it is so much easier to launder and hide from the authorities.

However, Bitcoin was designed as a libertarian tool by its creator, Satoshi Nakamoto, and so in these times of huge political uncertainty it could be argued that Bitcoin will need a greater degree of anonymity going into the future.

Trucker protest highlights need for transaction anonymity 

You only have to look at what happened in Canada earlier this year to realise the need for more untraceability around bitcoin. Trudeau and his government went far beyond the norm when they actually blacklisted a number of wallets belonging to those taking part in and supporting the trucker’s protest.

Admittedly, a significant amount of funding still got through, but the blacklisting of wallets belonging to law-abiding citizens could be construed as severe government overreach, and where would it all stop?

According to an article in the online libertarian magazine Reason, the fact that it was such a difficult task to achieve by the Royal Canadian Mounted Police, means that bitcoin requires far more resources in order to be able to hinder transactions.

Alex Gladstein, chief strategy officer at the Human Rights Foundation described the freezing of funds during the Canadian trucker protest, speaking first about cash:

«They were able to just freeze it with a phone call or a button click…But with bitcoin, they can’t do that. So they have to literally file an injunction. They have to use police officers. They have to go to people’s homes,» says Gladstein. «It makes the government do the work…which is really important.»

Emerging privacy tools

Nevertheless, the government was able to blacklist bitcoin wallets and also go into homes and cease cold wallets etc. Therefore emerging tools can help to preserve rights.

Sparrow Wallet is just one such privacy-orientated tool. Also, integrated into the same wallet is PayNym, which creates a different payment address for every transaction.

Also built into the Sparrow Wallet is CoinJoin, which according to Gladstein, is perfectly legal and a great way to combine lots of bitcoin and then break it into pieces again.

«[CoinJoins are] legally protected as open source software and free speech,» says Gladstein.»They are merely their open-source code. There’s no one taking control of your bitcoin. It’s a collaborative spend. That’s completely legal here.»

Bitcoin exists to protect liberty

While all good citizens would wish to respect the law of the land, it would have to be stressed that having the freedom to transact with whoever you want should be completely outside of the jurisdiction of government.

Bitcoin was the tool that has allowed the common man and woman to own and spend money that cannot be confiscated or manipulated by governments. It is outside of the failing monetary system, and as such is a lifeboat for those who need it.

Making bitcoin more private is a logical progression in these times where our freedoms are being encroached upon. It behoves freedom lovers to find out more about how they can protect themselves.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Source