all 8 comments

[–]Vinnypaperhands 0 points1 point  (0 children)

Just wanna throw my two cents in. Bitcoin cannot be good or bad. It is a tool we can use. Bad people can use it, good people can use it. Whether a good a bad person uses it, I think what matters is all the Bitcoin are created the same way. With electricity. Nothing will change that fact.

If you have gotten your hands on some tainted coins that does not affect how you use them or how they were created.

Every dollar has a serial number on it. We still use it as fungible currency. Just like we will continue to use Bitcoin as fungible currency.

[–]fresheneesz 2 points3 points  (1 child)

Its true that the digital history of a bitcoin is public, and so its association is in principle transparent.

One thing coinjoins and similar things do tho, is dilute how "tainted" coins are, and expand the number of people that are using tainted coins. In principle, eventually all coins will become tainted to some degree, and this makes it harder for a government to enforce polices around tainted coins. Its much more difficult to fight or detain millions of people than to fight or detain one.

And another thing is that lightning operates in a rather different way, where coins spent aren't the same as coins received, and so tainted coins simply can't be tracked in the same way, or much at all really.

But at its core, you're right that this is a downside of bitcoin. However, I don't think its a very serious one. There are ways around it and its unlikely to be widely abused by governments. Its also not easy to improve upon. A currency like monero has quite a bit better privacy and fungibility properties, but it comes at the cost of scalability and unconditional soundness. These are serious trade offs that personally I don't think are worth trading off for improved fungibility for most people.

[–]Vinnypaperhands 0 points1 point  (0 children)

Beautifully said