Who Needs Anonymous Cryptocurrencies and Why

Among the clients of rabbit.io, anonymous cryptocurrencies are quite popular. We often process swaps in which such coins are involved. This popularity isn’t influenced by current trends. Whether prices go up or down, whether there’s some political news related to these currencies or not — none of that matters to people who truly use them.

In this article, let’s explore why these cryptocurrencies remain so popular. On the web, you can find various real-life stories that help explain why people choose privacy coins. Let’s take a closer look at them.

User Stories

1. Realizing the Impact of Public Blockchains

A member of the r/Monero community on Reddit shared that he initially believed Bitcoin was anonymous but eventually realized that wasn’t true. Once he understood that every transaction in public blockchains is permanently visible, he felt uneasy: we don’t know how the world will change years from now or how we ourselves might change.

Putting all of one’s financial activity on a public blockchain is like getting a tattoo. Even if we’re sure that a cute cat tattoo will always make us happy, life can change.

A tattoo can be removed, but a blockchain transaction record cannot be erased. Currently, there’s no technology that can match every single transaction to a real person, but that doesn’t mean such a technology won’t exist in 10–20 years. And who knows if we’ll be okay with everyone knowing, in our old age, exactly who paid us in our youth and what we spent the money on.

Many people do get tattoos: that’s their deliberate choice and their right. Many use public blockchains, feeling they have nothing to hide. That is their right as well. But it’s not always a fully informed choice. The story from the r/Monero community shows that some people permanently record their transactions on a blockchain without truly grasping that it’s forever.

2. Circumventing Financial Restrictions

A user from a sanctioned country shared how the anonymous cryptocurrency Monero (XMR) saved him when making real-world payments. He buys XMR in order to pay anonymously for hosting services. Due to sanctions, he can’t get an international bank card, so he uses Monero to pay for server hosting. Monero lets him bypass censorship and make payments he otherwise couldn’t. He calls Monero a “real currency,” one that “makes it impossible to stop commerce” — it just works and gives everyone who needs it the freedom to transact.

In fairness, this applies to any cryptocurrency — even ones that aren’t anonymous — not just Monero.

3. Keeping Wealth Hidden

An anonymous post describes a typical scenario: many early crypto enthusiasts now have large holdings stored on blockchains with open transaction histories. At the moment someone reveals their address (for example, by withdrawing via a KYC exchange), criminals can trace the funds and see all related addresses and amounts. The author notes that if criminals really want to, they can connect a wallet to someone’s real-life identity and then attempt to scam or steal from them. He believes the only way to protect yourself is to convert your holdings to an anonymous cryptocurrency so your balance is no longer visible on any public ledger.

Judging by the amounts people exchange into Monero and other privacy-focused coins on rabbit.io, I’d guess many sizable holders share that perspective.

4. Lessons from Financial Collapse

A Zcash forum user recounted his personal experience from Argentina’s 2001 crisis. When people panicked and rushed to rescue their savings from banks, there were gangs that robbed them the moment they left those banks. Neighbors would tip off the criminals for a reward, and chaos ensued. That’s how he personally learned the importance of having secure, private money. That experience led him to explore anonymous cryptocurrencies. He needed a system that, even in moments of mass panic — when people often make security mistakes — would protect his funds from being tracked and guard him against robbery.

5. Criminals Evading Capture

It’s not just law-abiding users who value anonymous coins — criminals take advantage of them as well. There are plenty of stories on the web about this, though they’re rarely told by the criminals themselves.

A telling case: in Norway, kidnappers of a wealthy businessman’s wife demanded a ransom in Monero. And in some ransomware attacks, hackers offer a discount if the victim pays in Monero. The reason is obvious — total privacy. Anonymous cryptocurrencies can hide almost all transaction details, making it harder for law enforcement to track the flow of funds.

Key Factors Behind Choosing Anonymous Cryptocurrencies

The user stories point to several main reasons people turn to anonymous cryptocurrencies:

• Financial Privacy and Personal Safety

  The primary motivation is to keep the details of one’s financial transactions hidden. Not only are public blockchain transactions visible for anyone to see, but even standard card payments leave digital footprints that corporations and governments can collect. Anonymous cryptocurrencies function like digital cash, restoring a level of privacy. The more money you have, the more critical this becomes — people with large holdings worry that Bitcoin’s open ledger can reveal their wealth, making them targets for criminals. Privacy coins address both widespread surveillance and direct threats (extortion, theft), ensuring no one else knows how much you have or what you spend it on.

• Fungibility and Freedom from Transaction Censorship

  Each coin is identical, and its transaction history doesn’t affect its value. In networks like Bitcoin, we’ve already seen court orders blocking certain coins coming from specific addresses. In a privacy-focused blockchain, there’s no way to create such blacklists — analyzing the chain can’t distinguish one XMR coin from another. This protects users from financial discrimination. Privacy coins also resist censorship because external parties (like miners or regulators) can’t single out specific transactions if they can’t even identify them. This invisibility matters to those who fear having their funds frozen or being refused service.

• Freedom from Government and Bank Control

  People who’ve experienced a breakdown of trust in traditional finance often choose anonymous cryptocurrencies. Decentralized, privacy-oriented coins give you the sense that your savings truly belong to you. For example, residents of sanctioned countries or political activists facing censorship can use these coins to make transactions when conventional payment methods don’t work or are under surveillance. They want to use money without the fear that their every move is visible and under someone else’s control.

• Ideological Principles

  For some, using an anonymous cryptocurrency is a matter of principle. They see privacy as a fundamental right. Some in the crypto community say openly, “I support Monero because privacy matters.” They’re dissatisfied that most popular projects neglect confidentiality. Many feel privacy coins are the purest realization of the original vision of cryptocurrency as electronic cash: anonymous, decentralized, and accessible to everyone. In these circles, privacy outranks profit or speculation; as one person put it, “My privacy is more important than the coin’s price.”

• Criminal Motives

  We can’t ignore this negative aspect: criminals seeking to avoid law enforcement also favor anonymous coins. Bitcoin once had a reputation as the go-to for dark web payments, but as people come to understand how transparent Bitcoin really is, criminals look for more private alternatives. Privacy coins are the logical next step. Increasingly, ransomware authors demand payment solely in XMR — at least 22 types of ransomware now accept only Monero. Though this factor tarnishes the reputation of anonymous coins, it does contribute to demand.

Scenarios for Using Anonymous Cryptocurrencies

To illustrate who might choose anonymous cryptocurrencies and why, here are a few scenarios where transaction privacy is crucial:

• Journalists or Activists in Authoritarian Countries

  Imagine a reporter investigating corruption or an activist opposing the regime. Regular bank transfers pose risks to both the individual and their supporters: accounts can be frozen, and transactions tracked by secret police. By using anonymous cryptocurrencies, a journalist can receive donations or pay informants without exposing their identity. Even if the government is watching the blockchain, they won’t see senders, recipients, or amounts. This protects the journalist and their network, enabling them to continue working despite financial repression.

• Small Businesses Protecting Commercial Secrets

  In a world of transparent blockchains, a company risks revealing too much information to competitors — such as who its suppliers are, purchase volumes, or prices. To keep business relationships private, an entrepreneur can switch to anonymous cryptocurrencies for partner payments. For instance, paying for imported goods with Zcash in shielded mode or Monero makes the transaction invisible to outsiders. No competitor or malicious actor can discover where a store gets its goods or how much it pays. This is especially relevant in highly competitive industries or where revealing suppliers could jeopardize the business.

• Everyday Users Who Value Personal Privacy

  It’s not just extreme situations that push people toward privacy coins. Consider someone wanting to buy a sensitive medical product or a discreet service without making it public. In traditional systems, any card payment leaves a bank statement, visible to the bank, marketers, or even family members. By converting some funds into an anonymous crypto and making the purchase that way, the transaction and both parties remain undisclosed. This digital equivalent of cash offers peace of mind to people who’d rather not live under the “microscope” of big data.

Conclusion

Real-world stories and these scenarios demonstrate that anonymous cryptocurrencies appeal to a broad audience — from ordinary people concerned about personal data privacy to individuals living under high-risk conditions or heavy restrictions. For some, privacy coins are a shield against criminals and wrongdoers; for others, they protect against excessive government or corporate control. Some see anonymous cryptocurrencies as a source of ideological satisfaction and a sense of freedom, while others — unfortunately — use them as instruments of crime.

As cryptocurrencies in general grow more popular, financial transparency is increasing. (And this would be happening anyway in traditional banking, just with visibility granted to a chosen few rather than everyone.) This is why privacy has become more valuable. Many people are swapping public blockchain coins for Monero, Zcash, and other privacy-focused assets because they view it as a way to maintain independence in the digital world. That motivation underpins a steady trend: even if regulators try to restrict access to privacy coins, genuine needs for freedom and security keep demand going strong.

And rising demand is arguably the most fundamental factor in long-term price growth. So, it may be worth considering switching from regular cryptocurrencies to privacy coins for better security and the potential to preserve — and possibly grow — the value of your holdings.

Anonymous Cryptocurrencies Available at rabbit.io*

• Monero (XMR)
• Zcash (ZEC)
• Dash (DASH)
• Verge (XVG)
• Firo (FIRO)
• Beam (BEAM)
• Grin (GRIN)
• Pirate Chain (ARRR)
• Dero (DERO)
• NavCoin (NAV)
• PIVX (PIVX)

_This list includes cryptocurrencies whose networks allow you to send a transaction so securely that neither the sender nor the recipient can discover any information about each other — specifically, no details on prior or subsequent transactions or other actions linked to their addresses. These are typically referred to as “anonymous cryptocurrencies.”