Mixers and the Fungibility of Bitcoin

ByAnonymix

Can a quantity of bitcoin be traded for another of equal value? This concept, the idea of one thing being equally exchangeable with another, is called fungibility. The question of fungibility is a basic concept for the functioning of any currency— any one dollar bill has to be worth the same as any other one dollar bill, it would be impossible to calculate the value of anything in dollars, or arrange payment in that currency. So, is Bitcoin fungible? That question has long been a hotly debated point of contention when considering the future possibilities of the cryptocurrency. Now, with so-called "virgin" (freshly mined) bitcoins being offered for a premium price and casting doubt on Bitcoin's fungibility yet again, we consider the role that Bitcoin mixers can play in safeguarding the maturation of Bitcoin as a currency.


Why would someone pay more for freshly mined bitcoins? It comes down to anonymity, privacy, and financial security. It is well understood that bitcoin is not a privacy coin, and that it is possible to follow the transaction history of any person or individual coin by analysing the patterns in their activity. Exchanges where you can purchase BTC with fiat have your credit card or bank information, and KYC requirements increasingly mandate submitting official government ID to use an account. All of this adds up to compromised personal financial information if you’re not careful with taking steps to protect your privacy after you move your coins off the exchange.


Then, there’s the issue of so-called “tainted” coins and Bitcoin-related crime. If you possess coins that had been directly associated with criminal activity before you received them, you could be subject to investigation and those funds could be seized even if you received the coins legally and had nothing to do with the suspicious transactions. Some see paying extra for bitcoins that have no transaction history as the only way to avoid this risk, even if it means undermining the success of Bitcoin as a currency in the long run.

Bitcoin mixers can offer a different solution by offering anonymity without placing a higher value on some bitcoins than others. By mixing your coins regularly with a Bitcoin mixing service that provides a certificate of authenticity, like anonymix.io, you can prove the origin of your coins without paying a premium, and jeopardizing the fungibility of bitcoin. The certificate of authenticity is crucial because it means that, if your coins are ever called into question by an exchange, law enforcement officials, tax authorities, or private individuals, you can prove that they were sent to you by us, thereby shielding you from any past activity the coins may have had. After all, if you received these coins from anonymix, it guarantees they were NOT your coins before using the mixer.

Anonymix stands strongly by the concepts of online privacy and freedom. We offer our mixing service as a way for you to use Bitcoin anonymously and allow for the ongoing fungibility of the cryptocurrency.