gen. specific (OP)
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March 21, 2013, 04:20:20 AM |
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Hello, I am well versed in the ability to follow bitcoin transactions in the blockchain. As well as a user's ability to further obfuscate by masking their IP address or splitting their bitcoin transaction to multiple addresses.
But what about bitcoin to litecoin? I only thought about this after converting some on a different exchange just to check it out.
specifically I bought bitcoin with USD on mt gox where my identity is known to the mt gox operators. I then opened an account on vircunex, same IP address but no id verification necessary. I generated an address in my new brokerage account and transferred the bitcoins in mt gox to an address at vircunex. This transaction is recorded in the blockchain, but it is from one exchange to another and I suspect this is how it looks on the blockchain. So far, I don't believe that anyone could tell the origin of the bitcoins or the funds used to buy those bitcoins from the blockchain alone. I don't own a wallet.
Continuing, now on vircunex I bought litecoins. Can anyone continue tracing bitcoin once they are converted to litecoin? Can the origin of those litecoins or the funds used to purchase those litecoins be determined? This is where my knowledge gets murky.
Continuing, litecoins cannot be redeemed for fiat on vircunex, but they can be transferred to an equally anonymous account on btc-e, via generating addresses and coupons. on btc-e they can be redeemed for US dollars.
this wasn't intentional, just wanted to diversify and play around with cryptocurrencies for the experience as well as check out arbitrage opportunities, but then I noticed the ability to remove capital from the more regulated financial system while remaining liquid and digital.
would like to discuss how one would trace this with crossreferencing blockchains or something.
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According to NIST and ECRYPT II, the cryptographic algorithms used in
Bitcoin are expected to be strong until at least 2030. (After that, it
will not be too difficult to transition to different algorithms.)
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Phinnaeus Gage
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Activity: 1918
Merit: 1570
Bitcoin: An Idea Worth Spending
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March 21, 2013, 05:03:42 AM |
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Litecoin: Where Obfuscation Rules
Seriously, if this is the case, then Litecoin has a shot of becoming more viable for those whom cherish their anonymity.
If not the case, make it so, then market it as such.
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saddambitcoin
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March 21, 2013, 05:23:26 AM |
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wash your money with dem litecoinsss
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Spaceman_Spiff
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March 21, 2013, 05:30:29 AM |
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Hello, I am well versed in the ability to follow bitcoin transactions in the blockchain. As well as a user's ability to further obfuscate by masking their IP address or splitting their bitcoin transaction to multiple addresses.
But what about bitcoin to litecoin? I only thought about this after converting some on a different exchange just to check it out.
specifically I bought bitcoin with USD on mt gox where my identity is known to the mt gox operators. I then opened an account on vircunex, same IP address but no id verification necessary. I generated an address in my new brokerage account and transferred the bitcoins in mt gox to an address at vircunex. This transaction is recorded in the blockchain, but it is from one exchange to another and I suspect this is how it looks on the blockchain. So far, I don't believe that anyone could tell the origin of the bitcoins or the funds used to buy those bitcoins from the blockchain alone. I don't own a wallet.
Continuing, now on vircunex I bought litecoins. Can anyone continue tracing bitcoin once they are converted to litecoin? Can the origin of those litecoins or the funds used to purchase those litecoins be determined? This is where my knowledge gets murky.
Continuing, litecoins cannot be redeemed for fiat on vircunex, but they can be transferred to an equally anonymous account on btc-e, via generating addresses and coupons. on btc-e they can be redeemed for US dollars.
this wasn't intentional, just wanted to diversify and play around with cryptocurrencies for the experience as well as check out arbitrage opportunities, but then I noticed the ability to remove capital from the more regulated financial system while remaining liquid and digital.
would like to discuss how one would trace this with crossreferencing blockchains or something.
If you wanted to trace this moneyflow, they would have to get the data from the exchanges I guess. |
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dancupid
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March 21, 2013, 06:06:56 AM |
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You could just transfer bitcoins to an exchange and then withdraw them sometime later - the bitcoins you get back will not be the same ones you sent. The exchange will have the same information about you either way.
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Spaceman_Spiff
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March 21, 2013, 06:09:19 AM |
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You could just transfer bitcoins to an exchange and then withdraw them sometime later - the bitcoins you get back will not be the same ones you sent. The exchange will have the same information about you either way.
true, no need for litecoins  |
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Walter Rothbard
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March 21, 2013, 06:18:21 AM |
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Continuing, litecoins cannot be redeemed for fiat on vircunex, Yes they can, actually. All currency pairs are enabled for trading on Vircurex. You can trade LTC for USD or EUR, and withdraw the USD or EUR as VouchX or Vircurex coupons. |
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Phinnaeus Gage
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Bitcoin: An Idea Worth Spending
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March 21, 2013, 06:26:34 AM |
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You could just transfer bitcoins to an exchange and then withdraw them sometime later - the bitcoins you get back will not be the same ones you sent. The exchange will have the same information about you either way.
So, in essence, the exchange acts as a mixer or laundry service. |
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Spaceman_Spiff
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March 21, 2013, 12:50:39 PM |
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You could just transfer bitcoins to an exchange and then withdraw them sometime later - the bitcoins you get back will not be the same ones you sent. The exchange will have the same information about you either way.
So, in essence, the exchange acts as a mixer or laundry service. I would expect the exchanges to comply with the law and provide all details necessary to the government when a money laundry investigation is launched. |
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gen. specific (OP)
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March 21, 2013, 01:48:19 PM |
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Continuing, litecoins cannot be redeemed for fiat on vircunex, Yes they can, actually. All currency pairs are enabled for trading on Vircurex. You can trade LTC for USD or EUR, and withdraw the USD or EUR as VouchX or Vircurex coupons. you are right, I didn't realize I had to uncheck some settings in the account settings. It is very illiquid though |
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