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. 
Topic: Is it true that if you bounce bitcoin back and forth to different wallets - page 2. (Read 314 times)
June 26, 2023, 12:43:23 AM
June 25, 2023, 10:52:05 PM
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.
June 25, 2023, 10:51:21 PM
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.
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.
June 25, 2023, 10:15:11 PM
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.
June 25, 2023, 09:21:16 PM
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.
June 25, 2023, 08:51:25 PM
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.
June 25, 2023, 07:35:17 PM
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://bitcointalksearch.org/topic/which-ones-better-wasabi-or-sparrow-5457078
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
June 25, 2023, 07:28:30 PM
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.
June 25, 2023, 07:06:25 PM
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.
June 25, 2023, 06:34:38 PM
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.
June 25, 2023, 06:33:31 PM
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.
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.
June 25, 2023, 06:11:27 PM
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?
Jump to: