Jon Matonis – Bitcoin Mixing Services Are The Next Frontier

Jon Matonis – Bitcoin Mixing Services Are The Next Frontier:

Forbes contributor and Bitcoin Foundation board member Jon Matonis (@JonMatonis) describes the growing role Bitcoin mixing services will play.  Excerpts:

“If bitcoin exchange regulation becomes so effective that exchange operators are required to link specific bitcoin addresses to individual customers, then users may have few remaining choices should they want to maintain transactional privacy. […] Mixing services for bitcoin may emerge as the next frontier in the battle for financial privacy.”

“Also called bitcoin laundries, these web-based services charge bitcoin holders a nominal fee to receive different bitcoins than the ones initially transferred. The sites never handle national currencies like the dollar or euro so technically they are not exchanges.”

“Vitalik Buterin of Bitcoin Magazine argues that […] the core principles of the bitcoin protocol, such as user-defined anonymity and user-defined transactional privacy, remain intact due to optional mixing services.”

“When it comes to bitcoin oversight, regulators and law enforcement must comprehend that which is able to be constrained versus that which is not able to be constrained.”

 – (Further discussion of the post)

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