Bitcoin mixing has become increasingly popular as users understand that cryptocurrencies are not as anonymous as they have been made to seem. In reality, Bitcoin transactions are pseudonymous meaning that immediately a wallet is linked to your ID, there are strings of blockchain analysis companies that have tools that track the source of your coins.
This is why Bitcoin mixers thrive, what they do and how to select a good mixer.
Bitcoin blending which is also applicable to many cryptocurrencies is the process by which the digital currency is anonymized by mixing coins from various sources together thereby making it difficult for the coins from different sources to be identified.
The essence is to break the connection between a sending and receiving wallet addresses. So if there is someone spying on your wallet and the transactions you make to know how much is coming in and how much is going out and who the fund comes from or go to, mixing the coins using a blending service makes it impossible for anyone analyzing your transactions to know where the funds have gone to after mixing.
The process involves sending Bitcoins that you are aware that it came from a tainted source such as a gambling to the mixing service. The service anonymizes your coins by mixing them with those from other sources.
Why Do People Use Bitcoin Blending Services
Cryptocurrencies have raised questions of legitimacy because there have been suspicion that criminals favor it because it can be used anonymously to some extent.
This has been a source of concern to regulators because it is suspected that Bitcoin and other digital currencies can be used to launder money. It has been proven that users of the Dark Web have utilized it as means of payment.
This is why blockchain analysis companies are getting a lot of support from law enforcement agencies to see that Bitcoin transactions are effectively tracked. This would come handy when the need arises to investigate proceeds of crime.
A leaked memo recently showed that the US National Security Agency and the US Army are in support of tracking Bitcoins. This means that holders of tainted coins (that have been associated with crimes) such as buying and selling from the dark web or money laundering could have their coins tracked.
The gambling industry is well-known for being a channel for money laundering. Having coins from that source may put you under the radar.
In such situations what do you do? This is where an efficient Bitcoin mixing services such as Bitcoinmix.org comes in. The mixing service uses an efficient algorithm to obscure the source of your coins so that it seems to any blockchain analyst as if they are new coins.
How to Choose A Good Bitcoin Mixer
We cannot emphasize this fact enough. Dissociating your bitcoins from your identity is very important especially if it is substantial. The reason is the same reason you do not want strangers knowing about how much you have in your bank.
To use a mixer, it is important that you know its antecedence. The web is full of scam sites that can steal your bitcoins on any pretext. Also make sure that the mixer in question has a reputation of laundering your coins effectively to dissociate them from your previously known wallet.