What is bitcoin mixer? Finally explained
Bitcoin was a big wave when it was first introduced. It took the world by storm. And since the original Satoshi Version was launched the whole blockchain technology has found deeper roots in the world.
Nevertheless, there are always issues with technology. And unfortunately, there is no complete anonymity with bitcoin. This is why bitcoin mixers are important.
To understand bitcoin mixing, let us start from the start.
What made bitcoin famous?
There is no denying that bitcoin is awesome. At its launch two decades ago, many people thought it was unstable. It was argued that there is no way financial transactions could be achieved without middlemen like banks. Yet, bitcoin is stronger than ever because:
You are practically anonymous: Of the issues associated with banks is lack of anonymity. The bank and government can access your data at any time. If they decide to freeze your account, there is not much you can do.
Fees are extremely low: Transaction charges when using financial institutions are quite high. They make the whole process seem expensive when it should not be. Bitcoin came with less transaction charges.
Faster transactions: You don’t need to stay long queues for long hours waiting for transactions to complete. It takes several hours or even days to make an international bank transfer. With bitcoin, it is only a few minutes.
Trustless: You don’t need to trust anyone – person or corporation.
But there is a catch …
All the features of bitcoin mentioned above are awesome. But there is something about it that makes the excitement go away.
Everyone who has a copy of the full blockchain can check any transaction. The blockchain is freely available, meaning anyone can check into your transaction.
Someone else can use this and other external information to deduce your bitcoin address ownership. Sometimes people send money to a new address to cover this, but it is very thin. A potential spy and a good one will still get to you.
That is where bitcoin mixing comes in
Bitcoin mixing is the real savior of the day at this point. What happens is that you send your Bitcoins to a Bitcoin mixing company. They will take a small fee to prevent advanced analysis. They will hold on for random delay then send the same value Bitcoin from other people to your address. This brings back your complete anonymity.
Https://bitcoinmix.org for instance lets you shuffle your bitcoin using secure means. They don’t keep logs or collect any personal data.
Issues with bitcoin mixing
Even with this great way to stay anonymous, there is still a problem. People don’t like trusting companies. There are those who don’t like their source of Bitcoin known.
In this case, they use peer-to-peer Bitcoin mixers. Here a group of people shuffle their bitcoins in a process that does not require trust
So what is a bitcoin mixer?
In short, it is a company that takes your cash and gives you new cash. The cash is send to your secret identity to keep it so.