Bitcoin Tumblers Provide Privacy For Transactions
Brief History of Bitcoin
Bitcoin came into an existence in 2009 as a cryptocurrency (digital or virtual currency). It’s value was somewhere between 0 cents and 8 cents in 2009. Satoshi Nakamoto created bitcoin to act as a digital alternative to cash, which relies on trusting banks. He wanted to cut out the third party in all transactions. Fast forwarding to today, Bitcoin sits at over $37,000 per Bitcoin with a recent all-time high price just shy of $42,000!
Bitcoin Tumblers Explained
In order to use Bitcoins for a transaction of any type, one must create a Bitcoin wallet. A Bitcoin wallet is a place to store your Bitcoins digitally. Blockchain is a record of all transactions conducted with Bitcoin that can easily be seen by all users. Blockchain is a chronological database of all Bitcoin transactions. Bitcoin tumblers are services which allow users to hide their Bitcoins from the public eye, whether sending or receiving them. A Bitcoin or crypto tumbler is sometimes called a mixing service because it mixes your identifiable funds with other cryptocurrency funds. This is done with the intent of hiding the trail which would lead to the original source of the funds. Using a tumbler also helps to make your coins more secure from theft. The tumbler is a third-party service which breaks the wallet connection between both parties involved in the transactions. Essentially, there will be no way for other users to see the details of your wallet helping you to remain anonymous.
Why Use A Bitcoin Tumbler?
Keeping your identifying information private is a major reason to use a tumbler. Some people do not want corporations or governments to be able to track their transactions. Think of it in terms of a credit or debit card transaction verses a cash transaction. If you buy something online or in person with a debit or credit card, there is a record of your purchase stored with the retailer and your bank. This bank information could be accessed by almost anyone. Also, some people don’t want the government to know what they are buying so they use cash. Many people don’t want their private information to be sold to other companies, which is something retailers do with consumer information. It is estimated that approximately 84 percent of people using tumblers are doing it for benign reasons. Some people use them to conceal large transactions. It’s really nobody else’s business how much bitcoin you have, including the government. As a service, there are fees associated with using a tumbler and you should research which one is best for you. Bitcoin tumblers are a legal and useful way to remain anonymous in the world of Bitcoin.