Author: grarpamp 2013-05-14 17:30:05
Published on: 2013-05-14T17:30:05+00:00
The lack of privacy in Bitcoin creates a problem with tainted coins, which may become unspendable or only spendable at a discount. While the policy for Bitcoin states that all coins are equally acceptable, people can unilaterally reject them depending on the taint. However, there hasn't been any issue with revocability or taint inspection thus far. People have the choice and technical means to check the taint and send the bitcoins back.There is no paper detailing Bitcoin traceability issues when using various combinations of privacy enhancement methods such as using different addresses for every transaction, washing coins, and using anonymity networks.Rejecting tainted coins would be detrimental to the usefulness of Bitcoin as a currency of common global adoption. It is unlikely that people would want to use a currency that could potentially become unspendable or require extensive KYC and background checks on every potential customer. Furthermore, if someone were to blackball a large number of notes, it would render the currency useless for everyone. While specialized currencies in special markets may work, a global common currency cannot afford to have such issues.
Updated on: 2023-06-06T16:53:48.549419+00:00