Post
Topic
Board Bitcoin Technical Support
Merits 4 from 1 user
Re: BTC: cutting the trace
by
n0nce
on 16/10/2022, 23:54:39 UTC
⭐ Merited by o_e_l_e_o (4)
There are people that use Bitcoin mixer to cover the origin of there Bitcoins with a veil.

I will never make this, because this would make my BTC suspect. And there is a risk to make my BTC's dirty.

But here is my technical question:
When we change our BTC into another crypto and after change them back into BTC, I guess in this case it would no more be possible to trace back the origin of the  origin BTC.
Am I right? Or do I miss anything?
What do you think is the on-chain visible difference between someone selling their Bitcoin and buying it again and someone mixing? How do you tell that one of the 2 happened?
The whole idea of mixing is making it impossible / very hard to tell. A better mixer will do a better job of this than a worse mixer, of course.

If I am right: Why do people use BTC mixer? Isn't changing BTC into another crypto and change them back, not the much better solution to cut off the trace?
This definitely has the risk that the amounts match up and you can enhance this heuristic by looking at both chains and checking what happened with the altcoin right after it was acquired.
A mixing service like ChipMixer, or the scheme I came up with here, break these heuristics by allowing you to basically withdraw more or less than what you deposited. ChipMixer does this through their voucher system.