This is a guest post about Bitcoin Mixing, why people use it and its connection (or non-connection) to illegal activities.
What is Bitcoin Mixing?
The features of Bitcoin that makes it attractive to people is that the user is in control of the user’s own finances. The storing and transfer of the digital currency does not need the services of third parties such as banks or brokers. It is a peer-to-peer network that does not need long periods of time to confirm that you sent money to anyone. In fact, both parties in a transaction can view its state or number of confirmations.
Unfortunately, the transactions on the Bitcoin network are also available for any other person to see. They are public. Naturally there are people who do not want to have their financial records publicly available for a wide variety of reasons.
This is where Bitcoin mixers or blenders come in to save the day. What they do is essentially that they receive your bitcoins and mix, obliterate and obfuscate the trail of your transaction and send you coins that people can’t actually trace to your old wallet.
Why Do People Use Bitcoin Mixers?
Bitcoin is built on the distributed ledger technology also known as blockchain. Blockchain is essentially an open ledger that contains all the transactions made on it. These transactions are public and accessible to anyone that can view the ledger. This means that a careful analysis of the transactions of a wallet can easily know where it has been receiving funds from and where it sends them. A closer scrutiny will link the public address of any wallet to an IP address. This means that everything you do on the Bitcoin network can be traced back to you.
To avoid such situations, bitcoin mixing services such as Bitcoinmix.org can make your bitcoin transactions anonymous by dissociating your past transactions from you by mixing your bitcoins with those belonging to others and sending you equivalent volume of coins from a pool made up of coins from other wallets.
So, whenever you want to make sure that your Bitcoin transactions are private and anonymous, use a Bitcoin mixing service and have the coins dissociated from older transactions. The new coins you get in your new wallet will also be like new.
Bitcoin Mixers – Is Their Purpose to Circumvent AML-regulations?
Many people need their Bitcoin transactions made anonymous for different reasons. Among these are those that their coins came from sources that they do not trust. For instance, if you bought or sold something using Bitcoins, you can be sure that that is a tainted source.
However, it is important to bear in mind that whenever you have received substantial sums, it may be necessary to have them blended simply for the sake of privacy.
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