Is it true that if you bounce bitcoin back and forth to different wallets

[yat97]

that after a certain amount of time the bitcoin becomes practically anonymous? As in, not being able to be traced back to the original KYC exchange, or in the case of "tainted" bitcoin, that?

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[hatshepsut93]

Not true, simply sending coins from one address to another even many-many times  would be very easy to trace. Even if you try splitting and using many addresses, it would still be detected by specialized algorithms. Bitcoin mixing provided by specialized services uses coins of many individuals at the same time and they make algorithms for tangling their transactions specifically to counter the tracking algorithms.

But mixing doesn't make coins anonymous, it breaks the connection between the coins that you sent to a mixer and the ones that you received. You can still screw up and break your anonymity, for example by using the mixed coins as input together with non-mixed coins that are connected to you.

[BitMaxz]

Not all transactions that you made even if you have 100 different wallets they recorded on the blockchain explorers but it would increase your privacy if you split the amount into different addresses. Meaning it's hard for them to know if you still own the wallet addresses where you sent BTC but it is still traceable.

[decodx]

that after a certain amount of time the bitcoin becomes practically anonymous? As in, not being able to be traced back to the original KYC exchange, or in the case of "tainted" bitcoin, that?

Not correct. Since all transactions are public, even the most basic blockchain forensics will be able to trace your coins back to the exchange where they originated. No matter how many hops you make.

[cryptomaniac_xxx]

that after a certain amount of time the bitcoin becomes practically anonymous? As in, not being able to be traced back to the original KYC exchange, or in the case of "tainted" bitcoin, that?

No, it is still going to be traceable based on the input and output, and that's not how mixing works (as this seems to be your goal in the beginning, based on your definition).

So it's better to just used bitcoin mixing or tumbling services to achieved anonymity. You can find a lot of them here, some of the forum community even carry bitcoin mixing service signature.

[Kryptowerk]

that after a certain amount of time the bitcoin becomes practically anonymous? As in, not being able to be traced back to the original KYC exchange, or in the case of "tainted" bitcoin, that?

As others have already stated, the simple answer is no.
If you care for coin anonymity, you should check out mixing services. Ideally open-source wallets with so called whirlpool features. See the wallet section of this forum. This is a good start: https://bitcointalk.org/index.php?topic=5457078.0

On the topic of why you can't just send your funds to a few new addresses that you own to create anonymity, search "chain-analysis".
https://cointelegraph.com/news/antonopoulos-chainalysis-is-helping-worlds-worst-dictators-regimes

Generally I would recommend to check out Andreas Antonopoulos as a first resource to get informed about some Bitcoin fundamentals.
https://www.youtube.com/@aantonop/videos

[hd49728]

that after a certain amount of time the bitcoin becomes practically anonymous? As in, not being able to be traced back to the original KYC exchange, or in the case of "tainted" bitcoin, that?

If you sending your bitcoins back and forth between different addresses in one wallet, it does not make sense. All transactions will be linked to that wallet. Do you mean back and forth by sending your coins to your used addresses? It is bad because the recommendation is don't reuse your Bitcoin addresses.

If you have ever read guidelines to use Coinjoin transactions or Mixers, you will see they emphasize the importance of Inputs and Outputs. You have to choose Inputs, Outputs and Anonymity set properly to have good anonymity. If after a Coinjoin transaction or mixing process, you use Outputs to send back to your used addresses, it does not help your anonymity.

[Latviand]

They're all recorded in the blockchain so you don't really become anonymous. The addresses will always be on the ledger, that's why mixers are a popular service in bitcoin and crypto space, they mix it up with other coins to obfuscate the origins which makes the coin much more anonymous than just simply making it jump to different addresses.

[mk4]

Having a lot of hops just gives you plausible deniability that when confronted, you can possibly claim that the coins weren't yours anymore. If you can prove it or not and if the other party would dig deep into your past transactions or not is the question.

[adaseb]

What you are describing it pretty much what mixers do. They basically take your Bitcoin and send it to other addresses that want privacy and they are sent at random amounts and random times. Is it truly anonymous? I don’t know. There are some firms that can trace it anyways perhaps.

Keep in mind if you do this and send to an exchange like coinbase there is a good chance your account might get locked since they don’t like it when they receive funds which come from a mixer. Due to AML they are very strict.

[Zaguru12]

that after a certain amount of time the bitcoin becomes practically anonymous? As in, not being able to be traced back to the original KYC exchange, or in the case of "tainted" bitcoin, that?

It will be traced back to not just the KYC address but even to all address but the only thing is it will take just some few more time depending on how many addresses it was dispersed or send to. 4 recipient addresses will be easier to 100 and so on. As for exchanges there even exchanges that confiscate tainted coins sometimes that is why it is not even advised to send mixer coins from tumblers or mixers straight to exchanges.

[Charles-Tim]

that after a certain amount of time the bitcoin becomes practically anonymous? As in, not being able to be traced back to the original KYC exchange, or in the case of "tainted" bitcoin, that?

It only reduce the likely chance of tracing the coin back to the owner. The best that can be done is to use a mixer, coinJoin or to convert to a privacy coin like monero and convert back to bitcoin. But sending bitcoin through many hops before getting to the target addresses is also a good option if the transaction is done at different time like days or weeks in between, using many addresses and also better if you divide the coins into different addresses in the process.

[franky1]

tumbling does not degenerate the tag associated with the tainted coin as it still shows a clear path from one end to another
some exchanges after some time do suggest after a few spends it might have changed hands. but this is not a rule this is more of a consideration. its especially not considered as changing hands if full amounts are sent to new address in full(minus fee)
EG
100-99-98-97-96-95
where by they know 95 is 100% part of the 100 stash


alot of people try to split up value into smaller amounts across many addresses. but if at the end points the tumbler then joins the funds back together so they can spend whole amounts..  then the end points have same control as start point because its not a coincidence that the end funds join/co-mingle again with the same coins as start points
EG
                         21 - 21
                       /            \
            15 - 30 - 9          \
           /    /          \          \
       33 - 18 - 3      46        \
     /                \    /  \         \
100 -34-34-34- 37     \    49-70-100
     \                           \  /           /
       33 - 16-16-16-16-62-13     /
          \                               \  /
            17- 17-17-17-17-17-30  
this example is simplified but even with thousands of splits and tumbles inbetween start/end points. many analysis sites (even if changing whole coins through thousands of 5th decimal amounts and back again) can still see if a wallet controller is spending clusters of funds from same start point.

fungibility of coin taint is not a no-no-no-no-yes game.
its a % game. which each split of % of tainted funds is rated. and if using that last example, all are still 100% tainted even before they start joining back together
....
people then tried merging others stashes they own that were not tainted but this then makes analysis find out about other wallets the controller had that were not part of any taint to then look at the sources of other funds the controller had, with added suspicion of laundering taking place, which gives them reason to want to then look at the sources of the other funds that were added to obfuscate the taint

people then started 'mixing' where they would deposit their taint coins to a escrow/custodian. and the escrow/custodian would withdraw another persons coins. to not associate their other wallets. by using other peoples value instead..
the only issue is this is deemed as suspicious, which then makes even clean taint coins where innocent people start to get analysed and red flagged
where by anyone using a mixing system then gets watched closely

so when dirty taint coins enters a mixer/tumbler. they are watched even more so on the way out simply because they used a mixer/tumbler as it is seen as extra suspicious

in short. using mixer/tumblers/AEC(anonymity enhanced currencies) puts you on a watch list with higher intensity suspicion
and its not me saying this. its the regulations. its worth a read

[Die_empty]

that after a certain amount of time the bitcoin becomes practically anonymous? As in, not being able to be traced back to the original KYC exchange, or in the case of "tainted" bitcoin, that?

It will be traced back to not just the KYC address but even to all address but the only thing is it will take just some few more time depending on how many addresses it was dispersed or send to. 4 recipient addresses will be easier to 100 and so on. As for exchanges there even exchanges that confiscate tainted coins sometimes that is why it is not even advised to send mixer coins from tumblers or mixers straight to exchanges.

Using privacy tools like mixers and conjoin services are good because it would at least slow down the tracking process. They promote privacy because it will take a quality advanced tracing algorithms to track the movement of the funds. But I don't need to be scared if mixing coins will be appropriate as much as my coins are from a source clean. One of the biggest misconceptions about mixing and conjoin services is that they are mostly used for money laundering, illegal narcotics, computer fraud, and identity theft. But is this is far from the truth. I just learnt about the output and input principle of using mixers and it became clear that it is important to keep learning in this community.  

[PeRo]

The bitcoins would still be traceable since no matter how many times you switch between the addresses, it could still be easily found where the money would end. And you would spend a lot of money trough fees moving those Bitcoins around for nothing. On another note, Bitcoin is already anonymous since no one knows who is the real owner of the Bitcoin but it is always traceable trough the blockchain.

My advice is using mixer services - they can break the connection with your starting address and you receive untraced Bitcoins. And of course, you should check for scams - use only services proven to be fair and real. Personally, I have never used such services/sites but you can surely find a respected one here on the forums. Always check for reviews/accusations and good luck.

[Dunamisx]

that after a certain amount of time the bitcoin becomes practically anonymous? As in, not being able to be traced back to the original KYC exchange, or in the case of "tainted" bitcoin, that?

The best way to stay anonymous with your bitcoin transaction is to make use of the mixing service, it will not allow the linkage of the bitcoin wallet address you're receiving or sending to, the mistake people make is that they thought rebroadcasting of their funds on multiple wallets will make it anonymous to track, but the real idea is that it may increase the difficulty in making the linking but not making it anonymous, the best way to achieve privacy is to make use of bitcoincore software for by running full node transaction on the blockchain.

[Despairo]

Although centralized mixer is the most useful to obscure Bitcoin transaction, but you need to fully trust them because if they did bad, you will not anonymous anymore. Just like Chipmixer where it's become a honeypot by government.

Each method to obscure Bitcoin transaction work in a different way, each way also have it's own disadvantage and advantage.

I would encourage to use many wallets than just one or two wallet because people are put their eyes on address contain a lot Bitcoin.

[Wimex]

It does not seem logical to me to be changing our assets from one wallet to another all the time, in fact it could be counterproductive instead of beneficial, as many comment, this action will decrease anonymity, instead of increasing it. And not only that, this in turn would draw the attention of hackers who are looking for other people's money, it must be borne in mind that these malware are aware of any wrong move to seize whatever little or much a person has, so that by making so many transfers it could increase security errors, such as verifying the address of the wallet to which the money was sent, causing a cyberattack. If what you want is to increase your anonymity and security, it is good that you think and get strategic advice to know what is the best way to fulfill your mission, so that later you do not have bad times and end up with nothing.

[BitcoinPanther]

that after a certain amount of time the bitcoin becomes practically anonymous? As in, not being able to be traced back to the original KYC exchange, or in the case of "tainted" bitcoin, that?

No, you can still be traced since the connection between wallet hop is not disrupted, unless you mixed your coins using mixing service.  Since the process in mixing service is that the BTC send to your address came from another address and not the one that you use to send your Bitcoin. 

[BenCodie]

that after a certain amount of time the bitcoin becomes practically anonymous? As in, not being able to be traced back to the original KYC exchange, or in the case of "tainted" bitcoin, that?

As another user said, not true.

Not entirely true, anyway. There are factors like which node is being used to broadcast the transaction, and other network related factors which debunk that this strategy in any way helps your anonymity.

However, what it does do (if you do it with more sophistication than just moving it between your own wallet) is that it can potentially increase the ambiguity of whether or not the coins are still yours, or if they are now someone else's.

We are aiming to add a Cybersecurity & Privacy board to the forum, where we can discuss topics like this from the perspective of privacy. If that interests you, support the poll and write why you want the board added