I've read through many pages and I came up with a question that myself and others might find useful...What are the appropriate uses of ChipMixer to increase your privacy without increasing risk to yourself and others by using the service? I've listed some common bitcoin transactions that can occur before or after using ChipMixer. What does the community think of when it is appropriate to use ChipMixer? What is the best way to reduce risk while taking all parties on the other end of the chain, who may not be focusing on decentralization and privacy? Does the team have official responses to these questions?
I mostly agree with LoyceV, but in my own words (since you are asking for 'community opinions'):
- Usage: Using ChipMixer before sending bitcoin to someone or using a local/p2p exchange or to trade bitcoin for fiat
- Considerations/Questions: Will the other person withdraw with a centralized exchange? Do they need to follow privacy practices (what if they are an average user)? Is using chipmixer opening them up to risk or is it something that should be kept in mind before sending people bitcoin from ChipMixer?
- Opinion: I believe that this scenario poses the most risk to the potential receiver, and that there is not much personal risk (if any).
Firstly, it's not for you to worry about what someone is going to do with the Bitcoin you send them. Fact of the matter is that Bitcoin are Bitcoin and whether they come from ChipMixer or not, they have the same value.
Now, yes, there are some services which discriminate between UTXOs based on (actually pretty bad) metrics. Neither do we think such services are good, nor do we recommend using them and finally, if whoever you sent BTC to, decides to use one and their coins get confiscated, it's their own responsibility.
I personally try to stay away from such services, because this practice makes them highly untrustworthy.
- Usage: After receiving bitcoin from someone or using a local/p2p exchange to purchase bitcoin
- Considerations/Questions: Will sending bitcoins to ChipMixer open up the sender to any risk?
- Opinion: I believe that this scenario involves the least personal risk and risk to the original sender.
Neither scenario 1 or 2 put anyone 'at risk', except if the receiver decides to engage in business with untrustworthy businesses that give themselves the right to confiscate UTXOs. Anyone using such services shall do so at their own risk. Nobody is to blame but them and the service provider.
- Usage: Using ChipMixer before using a centralized exchange to sell bitcoin
- Considerations/Questions: Is there potential for the exchange to question the source of funds? Is using ChipMixer explainable? Is "I used it for my privacy" enough for a centralized exchange to let you through? Or does using ChipMixer pose a risk to your coins?
- Opinion: I believe that this is a gray area. It is correct that using ChipMixer is fine for privacy, a centralized exchange may not see it the same way.
- Usage: Using ChipMixer after using a centralized exchange to purchase bitcoin
- Considerations/Questions: Is there a benefit to trading your coins from a centralized exchange for coins that may have come from malicious sources? Might using coins linked with your identity/centralized exchange open you up to risks depending on how the next person from ChipMixer uses your inputs?
- Opinion: I believe that this scenario is what poses the most danger to users who might think they are becoming more private, except instead they might be opening themselves up to more risk.
You are
always 'at risk' of confiscation when using centralized exchanges. What if your money went through ChipMixer before you got it? What if it was a few 'hops' ago? What if it was withdrawn from a casino before you got it? Just. Avoid. Centralized. Exchanges.
It is impossible, irrational and pointless to demand from people to differentiate between UTXOs against some moral codex and only deposit certain coins, while denying or devaluing other coins.