If someone is giving me fiat money, I know that I can spend that money as easliy as I got it. The same thing should be with Bitcoin, so how are we going to handle with this issue?
This is the fiat equivalent to "tainted" Bitcoin.
There are at least two issues in comparing the two:
- Tainting of physical paper money is obvious. It can be easily verified and no one would accept a red dollar bill. Thus, tainted paper money bills stop being money in a transparent and easily verifiable manner
- bitcoins aren't separate units like dollar bills. They get mixed with other coins in varying proportions. It would be the equivalent of paying you with a stolen 100 dollar bill, which you deposit in the bank, and when you revisit the bank to withdraw your savings you find out your entire savings of $10,000 is now partially tainted because of this single bill
In any case this is what is great with a free market. People can choose to do what they want based on what they think is preferable. Hopefully regulation will be futile.