Quote from: BitcoinsGreat on October 11, 2023, 11:34:56 PM

Quote from: albert0bsd on October 11, 2023, 08:12:00 PM

Quote from: Kruw on October 11, 2023, 07:41:33 PM

It depends on your coin control. If you merge your faked outputs in the future, then it doesn't help.

I totally agree, people need to know what they are doing, if they start to merge utxos without any coin control, then all the previous mixers and coin-join transaction become useless and a waste of fees.

How is that even possible?

To help understand easily. let's suppose i have my Bitcoins in Wallet A, Wallet B and Wallet C and I created a new Wallet Wallet D.
I used mixers to mix my coins from Wallet A to Wallet D. Also i mixed my coins from Wallet B and C into Wallet D.

Now Wallet D contains all my bitcoins with three UTXOs. Now I Consolidating UTXOs to a change address in my wallet. Since i have mixed my coins from three wallets to my new Wallet D, no one can know the source of these transactions. Now Consolidating UTXOs one can only see that these all bitcoin belongs to one person but they will not know that these coins were mixed before reaching the Wallet D.

Don't forget that all transactions in the blockchain are permanently recorded and publicly available, meaning that an observer can know that someone used a mixer to create new anonymous output. When you create three of such outputs and send them one by one to separate addresses, it still looks like regular transfers from different people and can be considered relatively private transactions. But once these anonymous outputs appear in a single transaction, an observer concludes all those previous transactions were made by a single person, a person who used one or more mixers to anonymize his coins. Consolidation of coins almost always damages one's privacy and lowers the overall anonymity set, but this situation may change if we come up with a technology that will make multiparty transactions look like regular consolidations.