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How Crypto Currencies Help With Online Privacy

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altcoinsThe following information is strictly about the use of crypto currencies being used to make safe transactions online. It is not about mining them, obtaining them, using them as a form of investment or anything else.

There is a reason why bitcoin is the currency for the darknet. It is because bitcoin is hard to trace. It is best to think of Bitcoin and all other crypto currencies as cash for the internet. Where credit cards and debit cards can be seen as a pull system. With credit cards and debit cards they pull a lot of information from the card holder. This allows for malicious site owners to gather data on the user, to be able to benefit from it.

Example:

When buying a physical good online with a credit card, you need to provide your full name and billing address. Now lets say your billing address and name is different then the name and address it is being shipped to. The site operators now have two names from you and two addresses from you. Not to mention they also most likely have your E-Mail address since many sites these days ask for that along with your cell phone number.




This can cause many problems in many ways. It creates a huge distrust between customers and small start up businesses online. It also puts the card holder at risk when dealing with bigger businesses.

Almost every few years I hear a story about some company like Target getting hacked and credit card information from customers have been stolen due to the attack. This doesn’t just have to be target. The very idea that many big companies store credit card information in databases, puts every credit card user at risk. The card holders are putting an enormous amount of trust into such companies, and practically preying they wont get harmed.

People who claim that it is as simple as getting a new card and canceling the other one out. Don’t seem to understand the damages have been done and it is almost impossible to reverse them. They get a new card, but fail to realize that the hackers already know your billing address, first and last name, email address, possible phone number, the phone carrier. And all of that can allow them to easily be able to determine the address you live at, your age, date of birth, online screen names, your social network activities including the pictures you upload of yourself and you loved ones, online forum post and yes even your social security number. They can even find out with this little bit of information where you went to school, where you have worked in the past, all legal issues you been in, who you associate with and much more. These things are much harder for you to fix, and it is all from the innocent use of a credit card.




When it comes to bitcoin and other crypto currencies, the power is in the control of the buyer. The buyer can be as free to give the information as he/she wants. With crypto currencies the buyer can choose to give his/her real address for shipping purposes, or they can setup a drop box location on the other side of their town at a post office, and provide a different name for the drop box.

With crypto currencies the buyer can choose to add a proxy to the crypto currency wallet, or maybe even torify the wallet. But if the buyer chooses to buy without masking their IP address in any way shape or form they can do that as well.




Because of this crypto currency users have unlimited control over their purchases they make online. And in turn these same users tend to have more trust in buying from a small time website they never heard of before.

It pretty much becomes the equivalent of running into a person on the street willing to sell you something for a buck. Or in many cases dropping a buck in a homeless persons hand because you had a good day. You know the person knows nothing about you other then the fact that he gave you something and in turn he got something from you.

The only thing that the bitcoin user is required to do is send the agreed amount of bitcoins to an address which a string of characters a crypto currency wallet generates. Everything else is optional.