Monero is a privacy coin, just like Dash and ZCash. The privacy coins experienced a price surge since the warning from the Australian Tax Office (ATO).
According to ATO, Monero exchange and other privacy-centric exchanges interact with the physical world by obtaining information from financial institutions. However, could this be the reason for the recent price surge of Monero? Find out in this article while you read till the end.
What Are Privacy Coins?
Unlike regular cryptocurrencies, privacy coins allow investors to perform transactions anonymously. For monero exchange, you can hide your transaction details, receiver and sender’s information. Sometimes, illegal acts such as drug deals abuse the purpose of privacy coins. Since it is private, they perform illegal transactions and send money to unauthorized persons.
Privacy coins are decentralized exchanges. That is, an investor is solely responsible for performing transactions. However, this article recommends an adequate understanding of decentralized exchange operations before stepping into them. A proper understanding would guide you on when, how, and to whom to carry out a transaction.
Why the Price Surge of Monero Exchange?
Many people now buy a lot of privacy coins to strengthen their illegal activity. As a result, the price surges up as well.
Generally, cryptocurrencies price is highly volatile, and you should not expect the same rate for some period. Investors study the market carefully to predict the future price. The cryptocurrency market is highly competitive, while Monero has managed to stay at the top ladder. Being a decentralized investment platform, it attracted the interest of many millennials and Gen Z.
It enhances the will to grow one’s money without the policy from an institution or organization.
In 2018, the number of investors in cryptocurrencies rapidly increased till date. Hence, there is a large percentage of cryptocurrencies replacing fiat money. Despite cryptocurrency’s decentralized system, it does not privatize information enough, as much as some investors want it. Therefore, the Monero exchange is a result of an innovative technology approach.
For non private cryptocurrencies, you need an exchange platform before carrying out transactions. Hence, a company or organization is the middle man or third party when trading with another investor. Privacy exchanges are usually more affordable but complex than other centralized exchanges.
Influencers also have a role to play in cryptocurrency price fluctuation. Social media is a platform where big investors use their opinion to control the market. While many financial institutions do not accept the cryptocurrency for daily transactions yet, some countries’ laws are against it.
In Monero exchange, it is almost impossible for governments to track users’ transactions because it is private. However, since there have recently been some interactions with financial institutions, its privacy is not fully guaranteed. Governments are fearful of cryptocurrencies’ tendency to overshadow the state investments such as bonds and stocks. Hence, they try possible means to cripple its advancement. Meanwhile, few countries such as the USA readily accept cryptocurrency transactions as they can serve as a means of purchase from big organizations or companies.
The Role of Decentralized Exchanges
Research shows that Joseph Liu, an associate professor of the Department of Software Systems & Cybersecurity at Monash University, states that decentralized exchanges may not be private after all. According to him, Monero exchanges would involve countries’ or the government’s rights. For instance, converting Monero into fiat currency in Australia would involve the government notice. The Australian dollar is registered with its government, as well as other countries that authorize cryptocurrency transactions.
Therefore, it is safe to say decentralized exchanges are not the perfect covering for illegal activities. As long as you convert the money to your local currency, you can expect the government to trace the ownership.
On the other hand, you can carry out transactions without engaging the government regulations. Here is one of the many purposes some investors prefer decentralized exchanges.
Since you can trade your Monero exchange in an unregulated market, it becomes impossible for governments to trace your activities.
The US government announced the added tax percentage on investors, which led to the price surge shortly after. Therefore, the government also plays a role in decentralized exchange price fluctuation to control the rate of illegal acts. Hence, the government does not relent in tracking privacy coins. Moreover, tax fraud is becoming rampant with monero exchanges, putting the government regulators in an uneasy deal.
If you want a reputable exchange to perform transactions and ensure your privacy, Evonax is a good choice for you. There are several exchanges out there, and not every platform guarantees the protection of users’ data. Therefore, Monero exchange is the top decentralized platform for trading your coins.
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