blockchain analytics and tainted bitcoins / crypto-coins

[regexlove]

Thanks for mentioning coinanalytics.

You will never be able to identify all these coins

todate there have been less than 87 million bitcoin transactions.  
and the block chain is less than 44gb in size.  
Almost half the daily transactions are done through 'my wallet' according to blockchain.info
What may be the biggest portion of transactions any provider or party is yet able to translate?

An addititional data source in analysis can be recording IPs of most/all active nodes.  
You cant know how many parties already do so thoroughly


Tumbling/obfocusating by for example 10000 transactions will cost several bitcoins in fee - And take a long time to mimic a natrual duration of changing many hands distant/unrelated to eachother none of the intermediary addresses will be linkable to any real purchases  or identities.

real crooks have probably already buried their BTC beyond reach.

I assume many real crime and intermediary providers do not behave completely longsighted.

In the end, people who are innocent of those crimes, will end up losing their coins...

What would you think about such positive or negative notifications to accompany anyones transactions without enforcing.  Yet not even mentioning rather unsure cases?

[Soros Shorts]

Tumbling/obfocusating by for example 10000 transactions will cost several bitcoins in fee - And take a long time to mimic a natrual duration of changing many hands distant/unrelated to eachother none of the intermediary addresses will be linkable to any real purchases  or identities.

What about the innocent act of depositing BTC to a localbitcoins account and withdrawing and/or selling the equivalent number coins over the next few days? This is the simplest case you need to properly handle (without any additional information from localbitcoins) before you can even talk about mixers, CoinJoin or what not.

[regexlove]

A. easily traceable/open , simple purchases in big shops or donations to published adresses or verified identities and/or known IPs    

B. unknown2unknown transactions.   Traceable only through conclusions hence they use proxies/tor or so
plus Localbitcoins (minus all the people on localbitcoins who will happily use the same/connected addresses all the time.)
or mixers which are willing to spend huge portions in fees, act slowly but for many customers simultaneously

What if A gets whitelisted though and transactions that stay unkown2unkown are in anyway only few percent
and have some acorrelation with crime?

Then people who are already within A and dont generally feel need or see value in anonymity,
would tend to avoid transactions with B even more and the separation between both would grow.

Buying stolen goods for example will not make you actually gain ownership  (It differs between countries/legislations)
I assume same is for taking/trying to spend those tainted fiat notes from robbery even when you werent the thief, yet not for indistinquishable notes because it would be far harder to expect? Yet the blockchain is public and such automated ratings/whitelist may become avaiable to everyone.

localbitcoins was banned in germany.

a blockchain visualizer: http://www.elliptic.co/intelligence/

[Q7]

I don't think we need to go to that extent. I think even if you managed to compile a list of all the coins that are supposedly being tainted and have it offered for free (assuming if you have the private key to access it), there are still people who would want it regardless of whether it is tainted. The point is, there are many ways to even mix it around until it becomes almost negligible, so would it matter where it has gone to and where it has original come from?

[ATguy]

Buying stolen goods for example will not make you actually gain ownership  (It differs between countries/legislations)
I assume same is for taking/trying to spend those tainted fiat notes from robbery even when you werent the thief, yet not for indistinquishable notes because it would be far harder to expect?

Your right, this law is common. It just makes job easier, but at expense of those buying stolen goods in good faith. Pretty good example of bad law, like I cant find and punish the bad guy, so at least I punch this little poor one...

[regexlove]

why dont you guys think it can happen and needs to be checked?

 It is doable if you can get 51% of the miners on board. The miners simply refuse to accept transactions and blocks involving blacklisted addresses. Even mixers can't get around that.

(As said,) if any relevant parties, like wallet providers would whitelist/identify most,
and share the information between eachother (or through public API),
that would still practically corner the remaining few. Since, if people have choice between distiguishable and undistiguishable bitcoins the more people may voluntarily chose distiguisable ones. Many of those legislations that already tolerated or accepted bitcoin also already require companies to identify customers as if they were banks.  Same could/does happen to mining pools?

but if you are still interested, look up "bitcoin red list".

thanks ( https://bitcointalk.org/index.php?topic=334165.0  )

My prediction is that there will be hundrets of bitcoin 'redlist' entities.

-and by every such entity the destinguishabilty of every bitcoin may rise exponentially.

Pretty good example of bad law, like I cant find and punish the bad guy, so at least I punch this little poor one...

Depends destinguishablity. Yes, often unfair if law should intent to be strict even for hard to destinguish things just to aggressively promote to better keep care in the first place.