Cryptocurrencies are all in the craze these days. While many people are investing in digital currency, governments are trying to figure out how to regulate the same. From El Salvador making Bitcoin legal tender to Tesla testing it as an alternate payment option, there’s a lot of interest surrounding the crypto world.
Understandably, this rise in popularity is pushing more and more people to learn the basics of cryptocurrency. One such introductory lesson includes understanding the differences between private and public cryptocurrencies.
The following table gives a quick comparison between these two groups of cryptocurrencies based on privacy, market volatility, and other relevant factors.
Public vs Private Cryptocurrency
| Public Cryptocurrency | Private Cryptocurrency |
| Any transaction on an open blockchain is visible to those who have access to it. | All the transactions are hidden, and no one else can view them. |
| Transaction details, such as wallet addresses, are traceable. | Transaction details are cryptographically protected and untraceable. |
| There is a fixed value for each public cryptocurrency. | There is no fixed value of a private cryptocurrency. |
| It can operate in ways similar to currency/money and, hence, act as a replacement. | Its operations differ significantly from currency and, hence, can’t act as a replacement. |
| Usually, public cryptos are seen as a promising investment area. | Private cryptos are usually seen as volatile investments. |
So, these are the key differences between these two crypto categories. Some examples of public crypto include Bitcoin, Ethereum, Litecoin, and Ripple. On the other hand, Monero, Particl, Dash, and Horizen are some private cryptos.
Do you think cryptocurrencies are the future, or do you think it’s a trend that will fade away with time? Tell us in the comments.
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