Technology

What Is A Bitcoin, And What Is The Need For A Bitcoin Mixer?

What are cryptocurrencies?

Cryptocurrencies are the popular digital currency, and bitcoin is the most famous among them. Since it is virtual, it does not have any shape or design. The government currency is in circulation has a physical form and is available in notes and coins. Bitcoins are not even available in the form of the fake money notes that we play within the monopoly. If you keep in mind the circulation currency, you know you cannot handle so much cash. Therefore, to make your life easier, you can deposit the money in your bank account. When you require funds, you can either withdraw funds from the bank or use your debit card to draw. Therefore, you can handle your finances effectively.

In the year 2009, bitcoins came into existence in the public domain. A research paper in the year 2009 brought forth the idea of bitcoin. An individual named Satoshi Nakomoto was the one who wrote this paper. However, Nakomoto is a pseudonym, and no one knows his/her real identity.
Since there is no regulatory authority for bitcoins, it is essential to keep track of bitcoins by maintaining a public ledger. It is responsible for keeping a record of all the transactions of bitcoins. Thus, if you buy a bitcoin, your transaction record gets updated on the ledger. Similarly, if you sell your coins, then you can track your bitcoin through the log. The maximum number of bitcoins that can come into existence is 21 million. Due to the limited number of bitcoins, it is essential to keep track of these virtual currencies.

What are the bitcoin mixers?

The software like https://coinomize.biz that can mix your bitcoins with the other bitcoins in circulation to maintain your anonymity is called a bitcoin mixer. Even though the bitcoins addresses are a string of characters, they can still link to its owner’s identity. Now suppose, if you register on a bitcoin exchange, the website knows your identity. Hence, the withdrawal address of your bitcoin is available against your personal information. Also, software engineers capable of analyzing the blockchain can dig out your data quickly. Thus, you can see it is not hard to trace the bitcoins to their owners. Hence, if you obliterate the link between you and your bitcoin address, your identity remains safe.

What data can be collected if your address is known?

When you make another transaction using your bitcoin, it becomes easier to analyze your bitcoin address and link it right back to you. Therefore, your personal information is prone to a wide variety of threats. Apart from your personal information, unauthorized individuals can collect information like your bitcoin balance, what websites you use, what purchases you make, what services you use, and so on.

What are the types of mixers available for your use?

Since its inception, the bitcoin mixers have several types which are available in the market. It depends on you solely whether you trust a bitcoin mixer or not. If you trust those people, you can use the software that requires you to trust the developer. Else, you can use software that you need not trust. You can even make use of payment gateways from other sources to protect your addresses. You can even use particular privacy coins that will help you keep your bitcoin address safe.

Reasons why bicoins are good

In bitcoins, if you make a transaction, they are processed in a smooth and fast manner. Thus, this process makes it convenient compare to other methods that are used commonly. The digital currency present in your virtual wallet is transferable within minutes. Therefore, the most liked payment has become using bitcoins. This will indeed create a change in the method of business transactions and business fees.

The transaction charges are always free of any service charges or processing charges. You are also not asked to pay any deposit charges when you deposit bitcoins in your wallet. Therefore, if you start making payments using bitcoins, you save yourself a bunch by not paying the overhead expenses. However, keep in mind that you will not revert your bitcoins once you make the bitcoin payment

ABHIYAN
the authorABHIYAN
Abhiyan Chhetri is a cybersecurity journalist with a passion for covering latest happenings in cyber security and tech world. In addition to being the founder of this website, Abhiyan is also into gaming, reading and investigative journalism.

Leave a Reply