How will blocking the Tornado Cash mixer affect the crypto market?
The desire of the US authorities to block the popular Tornado Cash protocol can only lead to a sharp increase in the popularity of tokens with high anonymity, such as Monero and the like.
Interestingly, in recent weeks, this is at least the third strong signal that XMR will be almost an ideal coin for investment.
Cryptocurrencies as a whole rebounded from the bottom at the beginning of the summer. And gradually recovering the positions lost against the background of sanctions and economic uncertainty.
A big event in the world of Monero is scheduled for August 13 – a large-scale update that should simplify the work with the token, further increase its security, and, in general, give more opportunities to investors.
Obviously, most of them choose Monero precisely because of the security of the token. A specific feature of Monero is ring signatures, the algorithm of which makes it impossible to determine the specific two sides of transactions.
You will always have to choose from several equally likely people who verified the transaction.
Before the update, the ring size was 11 people, after the update, it will be 16. Which, mathematically speaking, increased the already high level of anonymity by at least 30%.
Now there is a new signal that Monero and other protected tokens are the right choices for the foreseeable future.
On August 8, the US Treasury Department added Tornado Cash and its associated digital wallet addresses to the sanctions list. Focusing on the US Treasury, the project addresses were blocked by Circle, Infura, and Alcemy. Github went the furthest, blocking the account of Tornado Cash developer and co-founder Roman Semenov.
The United States has thoroughly taken up the regulation of the cryptocurrency sphere; Tornado Cash is not the first and certainly not the last tool against which sanctions are being imposed.
A side effect is sure to be a sharp increase in the popularity of protected tokens – yes, you need to call Monero again. It has already added 40% of the cost in recent weeks, and after August 13, in combination with the activity of the US Treasury, its cost may fly into space.