Cryptocurrency mixing services do more harm than good to blockchain technology

[fiulpro]

A mixer (or tumbler) blends various types of theoretically recognizable cryptocurrency. This increases transaction confidentiality, because it allows tracing bitcoin difficult. The owner of Bitcoin sends the money to the mixing machine, exchanging it with that of other users and sending the combined cash to the requested address, ensuring there is no relation between the initial transaction and this address. Settlement sums should be chosen arbitrarily and the settlement consists of several tiny partial payments distributed over a longer period of time.
Such services are widely used by scammers such that they do not get traced.
Do you think mixing services are harming the adoption of the technology ?

First thing , these services are really important for the society , they allow some users the much needed privacy , not everyone is the same and therefore at one point of time one might now want his steps to be trackable.


These services are actually very good way to do that since normal Bitcoin transactions are transparent.

I do think you are forgetting the fact that Bitcoins and other cryptocurrencies are not made for scammers, there are only 10% people using it for illegal purposes and at the same time it might be used but I do think this does not reflect on the services but at the scammers themselves.


This is no way is the fault of the mixing services . Therefore I do think your statement is very wrong .  I have even worked with some companies like blender.io and trust me they are not doing it to promote scams or illegal activities they are doing it to protect the privacy.

[jossiel]

Everybody needs privacy.

Just like any other service, if your intention is evil then you're using it the wrong way. But if you're using it with the purpose of protection and to do no harm, you are using it correctly.

[o_e_l_e_o]

And the argument about scammers using it is weak because scammer also drink water and drive cars, so why don't we stop doing that as well?

Absolutely. Unfortunately it's a very common argument that we see used not just against mixers, but against all sorts of privacy promoting services and software, including things like Tor and encrypted messaging services. Why should we allow these services to exist when scammers and criminals use them? "Why won't you think of the children!?" It is such a common argument that it reaches all levels of society, and even our elected politicians use such arguments to try to "ban encryption" or other such nonsense (forgetting of course for a moment that banning encryption would break the internet).

Criminals use mixers. Better ban them. Criminals also use cash for illegal activities. Let's ban cash. Criminals send out scam emails. Ban email. What about the internet? You can buy illegal weapons and drugs on the internet. Better ban the internet. Criminals use phones to talk to each other. Ban them. Probably best if we just ban all forms of communication.

If you are fine with any and every third party and government sticking their nose in to your life and tracking all your transactions, then so be it, but you have no authority to decry others for using privacy enhancing practices such as mixers, especially when you base your argument on made up fabrications such as the majority of mixing traffic being illegal.

[Kelvinid]

snipped...
I think we can surmise what can be the answer to the OP's question.

This is the whole story about Bitmixer.io closure https://news.bitcoin.com/one-of-the-largest-bitcoin-mixing-services-closes-its-doors

What it gives them pressure and putting their ends because if the law enforcement hunting them down.
The sad story is that they are allowing scammer and some illegalities used the services that brought them into trouble. If they not allowing it the same thing that other mixers do, it surely they still exist at this time.

Mixing services keep an individual's privacy as to how it works but somehow gives the opportunity for the scammers to hidden. But that is not the case right now because mixing services don't allow that thing to succeed if they get noticed and having suspicious activity. They don't want to ruin their image and they also don't want to be in question by authorities which makes them still alive.

[Leviathan.007]

A mixer (or tumbler) blends various types of theoretically recognizable cryptocurrency. This increases transaction confidentiality, because it allows tracing bitcoin difficult. The owner of Bitcoin sends the money to the mixing machine, exchanging it with that of other users and sending the combined cash to the requested address, ensuring there is no relation between the initial transaction and this address. Settlement sums should be chosen arbitrarily and the settlement consists of several tiny partial payments distributed over a longer period of time.
Such services are widely used by scammers such that they do not get traced.
Do you think mixing services are harming the adoption of the technology ?

You are totally mistaking. So, mixing services are harming just because they help scammers and criminals, What about the privacy? One important goal of Bitcoin was always for some people who really care about their privacy. None will understand their total funds, including governments. Otherwise, Bitcoin would never be than much popular between people. Mixing services will help people to increase their privacy when they really care about it.

[maxreish]

Such services are widely used by scammers such that they do not get traced.
Do you think mixing services are harming the adoption of the technology ?

Kind of, if you can remembered the past issue about mixing services wherein authorities found out about the illegal transactions using this kind of services thus issued some banned to used it. That actually ruined somehow the reputation of btc's name.

It was calm now and regains good name back thus if this scammers continue to use mixers to mask their identity, the adoption we are aiming for will be hard to achieve.

[Betwrong]

A mixer (or tumbler) blends various types of theoretically recognizable cryptocurrency. This increases transaction confidentiality, because it allows tracing bitcoin difficult. The owner of Bitcoin sends the money to the mixing machine, exchanging it with that of other users and sending the combined cash to the requested address, ensuring there is no relation between the initial transaction and this address. Settlement sums should be chosen arbitrarily and the settlement consists of several tiny partial payments distributed over a longer period of time.
Such services are widely used by scammers such that they do not get traced.
Do you think mixing services are harming the adoption of the technology ?

As you can see from the replies above, it's not that simple. In the free world, the fact that something is used by scammers(or abusers) doesn't imply banning of the thing. (Well, I mean, ideally. Unfortunately, in real life we still keep suffering from some wrong decisions of our governments). If junkies are misusing cough syrup, it doesn't mean that little kids should suffer from unbearable cough, when the syrup is banned.

[Taskford]

A mixer (or tumbler) blends various types of theoretically recognizable cryptocurrency. This increases transaction confidentiality, because it allows tracing bitcoin difficult. The owner of Bitcoin sends the money to the mixing machine, exchanging it with that of other users and sending the combined cash to the requested address, ensuring there is no relation between the initial transaction and this address. Settlement sums should be chosen arbitrarily and the settlement consists of several tiny partial payments distributed over a longer period of time.
Such services are widely used by scammers such that they do not get traced.
Do you think mixing services are harming the adoption of the technology ?

As you can see from the replies above, it's not that simple. In the free world, the fact that something is used by scammers(or abusers) doesn't imply banning of the thing. (Well, I mean, ideally. Unfortunately, in real life we still keep suffering from some wrong decisions of our governments). If junkies are misusing cough syrup, it doesn't mean that little kids should suffer from unbearable cough, when the syrup is banned.

Correct, It's just we need to be careful for the things we are going to since at the first place we are the one who's handling our money and we are the one who's gonna decide if we will trust those junkies as you said or not, remember in this world no scammer if there's no willing victim. So its not really good to blame that in mixing service since for sure many use that for good reasons.

[Rengga Jati]

First, many people stated that Bitcoin is harmful because it is used by many terrorists and also used for money laundering. Then here, the mixer is also harmful because it is used by scammers to make their transaction privacy. Well, thinking about it, all things can be used for any kind of criminal. Let's see how fiat can also be used to do it. We can also think about other technologies that are also the media for criminals. But should we blame them to be harmful? I think that harmful or not depends on the users.

[Findingnemo]

First, many people stated that Bitcoin is harmful because it is used by many terrorists and also used for money laundering. Then here, the mixer is also harmful because it is used by scammers to make their transaction privacy. Well, thinking about it, all things can be used for any kind of criminal. Let's see how fiat can also be used to do it. We can also think about other technologies that are also the media for criminals. But should we blame them to be harmful? I think that harmful or not depends on the users.

Maybe OP is claiming that, if there is no service exist the scammers may not be able to use them to increase their privacy.I guess this thought has been raised as a result of many mixers were closed in the recent months due to that they were used by some criminals.

We all thinks that privacy matters only for criminals but why we shouldn't keep our privacy so mixers are used for legit purposes more than criminals, because criminals knows better way to hide their identity for now.

[pixie85]

Everybody needs privacy.

Just like any other service, if your intention is evil then you're using it the wrong way. But if you're using it with the purpose of protection and to do no harm, you are using it correctly.

If everybody needs privacy then all human beings need it regardless of their trade.

As scammers they are spineless people but still people. We shouldn't throw away a useful device just because a scammer might want to use it.

It's not even a case of a gun that can be used to shoot a wild boar or a police officer but rather similar to a bank account. Should we not allow convicts to have bank accounts because they were once caught doing something illegal?

Scammers and thieves have the right to eat, sleep, voice their opinions, vote, and have some basic privacy.

[hatshepsut93]

You can't stop progress just because criminals might benefit from it, with that thinking we would still live in caves and use stone tools. Historically, crime levels are going down across the world, and the invention of crypto didn't make any global impact on it, so even if darknet markets exist and use Bitcoin, they aren't some huge social problem. There's a lot more things that need to be done in terms of crime fighting, before you can start looking at Bitcoin.

[ChiBitCTy]

I have never actually used a coin mixer before but I've not heard much positivity when it's been brought up.  The same goes for coin-joins, I've not heard many positive things about those either.  The need for privacy is real and is important however.  I would prefer use an all privacy coin such as Monero then mess  with stuff.

[Krislaw]

Everyone needs privacy one way or the other Regardless of who is using a mixing service. Which is part of Bitcoin's purpose. There's no proof to back your claims.
Crimes happens all form before crypto came into existence. Fiat scam rate is higher than the one in crypto.
We want solution? Let's ban cash and crypto. Maybe that's going to work.

[BuNga_cute]

I'm sure the main purpose of mixing services is for good things, I've read lots of reviews about mixing services and most of them
feel helped because it can increase the privacy of Bitcoin transactions. In my opinion everything is good and bad, as well as mixing
services depends on the person who wearing it. And I'm sure the number of scammers who use mixing services is no more than 2%,
so the conclusion mixing services are very good for blockchain technology. Because everyone does need privacy.

[btc_angela]

Everybody needs privacy.

Just like any other service, if your intention is evil then you're using it the wrong way. But if you're using it with the purpose of protection and to do no harm, you are using it correctly.

Right everybody needs privacy in crypto, and I'm sure most of us here are trying to do that by using a mixing services to protect and hide our every transactions. So I don't think that mixing services are doing harm, they are design for that specific purpose. Criminals will always be criminals, they will find ways to circumvent the law and I don't think that most of them are using mixing services anyways, because it they are then it will be hard for authorities to track them.

[carlfebz2]

Everybody needs privacy.

Just like any other service, if your intention is evil then you're using it the wrong way. But if you're using it with the purpose of protection and to do no harm, you are using it correctly.

Right everybody needs privacy in crypto, and I'm sure most of us here are trying to do that by using a mixing services to protect and hide our every transactions. So I don't think that mixing services are doing harm, they are design for that specific purpose. Criminals will always be criminals, they will find ways to circumvent the law and I don't think that most of them are using mixing services anyways, because it they are then it will be hard for authorities to track them.

As a criminal then you  would surely have that thing in mind on making yourself untraceable which means when it comes to any theft or fraud situation then this will automatically tie up with these mixers
that we've known since when they do already able to mixed up things then its impossible for them to be traced up. Anonymity do really have its pros and cons and it will

vary on the individual thats been using up on the service.This is why they are primarily target out by authorities.

[Sadlife]

Mixers are not 100% guaranteed that will hide your privacy after all its still a theoretical technology. It's not really proven to bring privacy to an transaction once if you use the service.
I still think that mixers in some scenario's are necessary to avoid tracking from third parties such as government trying to cease your Crypto assets. I guess this all depend on how you use the technology.

[thesmallgod]

Mixers are not 100% guaranteed that will hide your privacy after all its still a theoretical technology. It's not really proven to bring privacy to an transaction once if you use the service.
I still think that mixers in some scenario's are necessary to avoid tracking from third parties such as government trying to cease your Crypto assets. I guess this all depend on how you use the technology.

Thanks. A lot have been discussed about this subject and this has makes me realize no matter how good a technology is people will also look for the negative part of it and used it. Just as we can't separate people that use bitcoin for legitimate business from those that use it for evil so also it is applied to crypto mixing platform. However, we all want more adoption of crypto but this negative use cases remain the obstacle we should all fight off

[witcher_sense]

Thanks. A lot have been discussed about this subject and this has makes me realize no matter how good a technology is people will also look for the negative part of it and used it. Just as we can't separate people that use bitcoin for legitimate business from those that use it for evil so also it is applied to crypto mixing platform. However, we all want more adoption of crypto but this negative use cases remain the obstacle we should all fight off

Negative use cases are unavoidable in decentralized, open, permisionless, censorship resistant systems like bitcoin. That is not what we should fight against. To the contrary, that is what bitcoin is loved for. It gives your freedom to act however you want, however you used to. If you are a good guy, bitcoin gives you an ability to do good things without having to ask a permission from bad guys. If you are a bad guy, you continue to do bad things with any means you like, it doesn't matter if you use bitcoin, it won't change your character and your evil habits anyway. People should change themselves in order for them to use bitcoin for a greater good, bitcoin shouldn't be changed, it works perfectly.