Crypto (BTC, ETH, and UDST) are not the solution, it is less private than a credit card as everyone can view the buyer and seller on a Blockchain. Additionally, they can ban the exchanges associated with you the same way visa/mastercard does. Coinbase accounts got banned that way.
Only monero is truly private, but it is difficult to exchange currency with it.
Lets say I trade some crypto on a platform like Coinbase or Binance, then I send it to my personal wallet. And from my personal wallet I buy games. Now how do you prove that transaction that is going from exchange to my personal wallet, is in fact transaction to my personal wallet and not just another P2P transaction to some other person who gave me cash IRL in exchange?
Sorry for the wall of text.
Not precisely, the same wallet (like Moon, ledger, etc. for example) can generate several public addresses from the same private address, and you (as the owner) can automatically access all of them like one same 'account'.
Also, while it's true the blockchain is open, there is no personal data associate with any address. Nobody can know the address bc165ert783eres43etcetc is associate with Name Lastname. You can try track it, right, but is not infallible. If you send x amount from address 1 to address 2 how do you know address 2 is the same owner of adress1, the bakery or a church's bingo?
'Additionally, they can ban the exchanges associated with you the same way Visa/Mastercard does.' <- That is true, but how can they prove you are buying porn, donating to Ukraine, paying a VPN, just saving or sending money to your cousin? You can't just simply shut down an exchange 'just in case'. Also, while not completely safe, there are P2P exchanges (while you have to be careful here like any p2p market, is not shady and stuff).
I don't understand the difference between monero and bitcoin. Can you explain? or link to a place to learn? (and just don't reply google please.)
Also, i think the issue is not about the legality but more like a forced moral. (I may be wrong, so please tell me if i am) The deal looks more like. 'Collective shout' wants to censor adult stuff (opening the door to censoring more things in the future from other parties) -> Mess with Visa/Mastercard -> Visa/Mastercard mess with itch.io, Steam and all of the users.
Yes and no. Blockchains are all publicly visible. Everything that happens on them is public knowledge. Rather than anonymous, though, they are psuedo-nonumous. That is to say, any knowledge of somebody’s identify is contextual. If you can confirm, with certainty. that somebody owns a given wallet address you can then start tracing what they’re doing. For example, you can know who somebody is based on them publicly posting about owning a given NFT. That contextual information ties them to the wallet and all the transactions attached to it and now everything you do on the blockchain is, effectively, public knowledge unlike with traditional finance where there are strict laws in place to (mostly) protect your privacy. While not perfect they do (mostly) work.
Source for that last bit is that I used to be a software developer for a major financial institution in my country and had to deal with privacy matters from time to time.
Edit: spelling mistakes
.> If you can confirm, with certainty. that somebody owns a given wallet address you can then start tracing what they’re doing.
With Hierarchical Deterministic wallets that seem to be golden standard nowadays, I don't think you can trace a lot. Because new wallet addresses are generated automatically for every transaction. Imagine proving "with certainty" that every single one of those addresses belong to certain person or company.
