Home / Crypto Currency / 5 Bitcoin Coin Mixer Facts to Remember in 2018

5 Bitcoin Coin Mixer Facts to Remember in 2018

Bitcoin lacks native privacy and anonymity. Its transactions are public for everyone to see and are broadcasted in real time. To counter this problem, people often rely on mixing services to obtain at least a degree of privacy. There are a few aspects of coin mixers often overlooked by the average Bitcoin user.

5. Not Just a Tool for Criminals

Most people associate coin mixers with criminals laundering Bitcoin proceeds. While that is a valid use case, there are many other reasons for using such tools and services. A lot of users and traders simply like to remain anonymous, and using a mixing service can help achieve that goal.

Such a desire mainly stems from a fear of public identification. More specifically, users are worried their Bitcoin holdings will be traced back to them, which might attract all kinds of attention. While these users are far less common than people laundering criminal proceeds through coin mixers, it shows the model can be used for perfectly legitimate uses as well.

4. Companies Use Coin Mixers

Coin mixers are quite appealing to many companies. While some firms have embraced Bitcoin payroll options, keeping specific information about recipients private is always preferable. Additionally, using a mixer will help companies “mask” the amounts they are paying their employees. Whether or not that requires the use of a mixer is a different matter altogether.

3. Trust Is Critical

One of the important points people often overlook is that one needs to trust a coin mixer to send their money to a specified address. Although this may not seem like an issue, “removing taint” from large sums of Bitcoin is rather problematic when using a mixer. After all, a site owner could always decide not to forward the coins to a given address. Significant trust is required, and trust is not easy to give or earn over the internet.

2. It’s Not Free

Unlike traditional Bitcoin transactions, using a Bitcoin mixer is relatively expensive. On top of paying transaction fees, service providers usually charge anywhere from 1-3% in fees based on the amount being mixed. If one tries to mix 100 Bitcoin in one go, he or she will lose up to 3 BTC in the process. It is a very steep price to pay, although for those who genuinely want privacy or anonymity, it can still be worth it.

1. Government Intervention

Although one could use coin mixers to avoid government intervention, these services also tend to have the opposite effect. They make it easier for criminals to launder proceeds in an anonymous manner, which makes government officials even more intent on shutting down these types of services. Cracking down on coin mixers is difficult since most of them reside on the deep web.

Read more

Check Also

Which Cryptocurrencies Will Survive The Altcoin Apocalypse?

With the massive crypto market rout that has occurred in ‘red August’ many are now talking of an altcoin extinction which could spell the demise for the majority of them. Which ones are likely to survive is the key question. Most of the altcoins have dropped way below their price levels this time last year and are 80-90% down from their all-time highs. This has led many to surmise that it could be game over for many of them. According to Ted Rogers, the president of crypto wallet provider Xapo, this extinction level event could wipe out 90% of the altcoins; We could be in the midst of the extinction-level event for “cryptoassets” that many maximalists have predicted. 90%+ of @CoinMarketCap list will disappear eventually – might as well happen now. Meantime, lower BTC price means incredible opportunity to buy more #bitcoin — Ted Rogers (@tedmrogers) August 14, 2018 This sentiment has been echoed by Ethereum founder Vitalik Buterin when he famously said that most of the coins on Coinmarketcap will go to zero back in October before the big run up. Buterin’s comments were aimed more at low quality alts, or ‘shitcoins’ as they’re commonly known in the trade. Rogers, however, believes that only Bitcoin is the king and now is the best time to buy it. He may be onto something since Bitcoin’s market dominance has increased to 53.7%, its highest level this year. Surviving the Extinction If there is merit to these words, which altcoins will survive? To find out we need to look back to the ones that have survived such market drops in the past. These are most likely to survive this slump and possibly grow stronger in the future. Going back to 2013/14 is an almost mirror image of the current market situation with a huge pump at the end of the year and a massive dump throughout 2014 when markets shed 80% before recovering again in 2015. Total Market Capitalization 2013-14 Looking back at altcoins in 2014 we can see Litecoin as the second most popular cryptocurrency, priced at just $9. Also in the top twenty altcoins back then were XRP, Dash, Nxt, Dogecoin, Bytecoin, Maidsafe, and Monero with a few others. The rest have faded into obscurity so it is likely that these few will survive the current market depression. More recently there were a couple of smaller jumps and drops in 2016. Altcoins around back then include Ethereum which has taken and held the second spot as it is now the platform of choice for 90% of blockchain startups. Also in the top twenty were the same coins as in 2014 plus Nem, Lisk, DigixDAO, Waves, Steem, Siacoin and Stellar. This is not to say that they will definitely be around next year but they have a better chance than some of the newcomers simply because they have weathered these storms before. A Working Product or System Another factor to consider is whether a project has a working product or is just still a concept or work in progress. This could be fodder for extinction as non-operational altcoins are weeded out in favor of ones that actually have something on the table or have made significant partnerships. Looking at today’s top ten Cardano is the worst performing altcoin dropping 93% from its all-time high. It does not yet have a fully working product and is largely conceptual though the roadmap does look busy, whether this is enough to avoid extinction remains to be seen. EOS is similar with no real functioning product and a massive slide of 80% since the hyped pump it had in April. Iota also seems ahead of its time and has lost over 90% since its ATH, and then there is Tron which must be the most overhyped altcoin in the list that still doesn’t really do anything yet. There are too many to mention, 1845 on Coinmarketcap in fact, and this article is largely hypothetical but if such an apocalypse is to occur, only those that have survived the test of time and have some degree of product functionality have the best chances of surviving again. Image from Shutterstock The post Which Cryptocurrencies Will Survive The Altcoin Apocalypse? appeared first on NewsBTC.

Leave a Reply

Your email address will not be published. Required fields are marked *

Disclaimer: Trading in bitcoins or other digital currencies carries a high level of risk and can result in the total loss of the invested capital. theonlinetech.org does not provide investment advice, but only reflects its own opinion. Please ensure that if you trade or invest in bitcoins or other digital currencies (for example, investing in cloud mining services) you fully understand the risks involved! Please also note that some external links are affiliate links.