There is actually a thread where this has been pointed out that the police for a long time have solved crimes without the need for digital tracking and still do. Recent questions about SAFE's societal implications and is still open if people want to discuss those things of safe and crime
For an article entitled “There’s no such thing as tainted bitcoin”, this article does a pretty good job of demonstrating the opposite.
This chainalysis blog article shows a screenshot of their “Reactor” analysis graph. Fancy, fancy.
If you click on only one link in this thread, let it be this one.
I hasn’t been interested in ‘fungibility’ topics . However, after reading the post, I thought that this seems to be a problem with centralized exchanges with user’s accounts, not with the bitcoin wallets. To me, bitcoin wallets seem to be fungibility.
However, since I was not interested in the fungibility, this may be off the point. Thanks @danda
The problem is with the design of bitcoin itself, such that links are visible between transactions which leaves a trail and enables exchanges to claim that some funds are “bad” while others are “good”. Always after they have accepted your funds of course. So it becomes a crap-shoot if you will get your money back or not. Some bitcoin wallets try to obfuscate the history trail, but even those wallets have real-world fungibility issues, as the linked page details.
I’m so glad you’re here, @danda!
From the Bitcoin Fungibility Graveyard, linked above.
Marathon Digital Holdings Inc. launches a mining pool “that is fully compliant with U.S. regulations, including anti-money laundering (AML) and the Office of Foreign Asset Control’s (OFAC’s) standards”:
“We believe that such regulatory compliant mining will allow us to produce ‘clean’ Bitcoin.”
“On May 1, 2021, Marathon will begin directing 100% of its hashrate to the new mining pool.”
“By 2022, Marathon expects to have deployed 103,120 miners to direct 10.37 exahashes per second, or EH/s, to the mining pool — equal to roughly 6.4% of the Bitcoin network’s current combined hash rate.”
“[Will] be the seventh largest bitcoin mining pool in the world.”
Blockseer launches compliant Bitcoin mining pool that only mines approved and filtered transactions:
“Blocks posted to the Bitcoin blockchain by Blockseer’s pool will only contain filtered transactions using Blockseer and Walletscore’s labeling data, along with verified sources such as the United States OFAC blacklist for crypto.”
Bitcoin mined in China or via fossil fuels are not acceptable to institutional investors:
“If you don’t want to own China coin—also being called ‘blood coin’, which sounds like blood diamonds—you’re going to prove where your coin is born.”
Freshly mined bitcoin fetches a 20% (or “very large”) premium from large buyers, as this is the only bitcoin available without taint or history:
Only “virgin” Bitcoin mined by state-sanctioned miners can be used in Iran:
Quote from 2019:
Here’s another great quote from Andreas:
The important thing we need to achieve in the base layer is not scaling; the important thing we need to achieve in the base layer that CAN NOT be achieved in the layers above is fungiblity and privacy with strong guarantees and simple primitives. And if we have privacy primitives and fungibility primitives in the base layer than we can do scaling in the second layer and we can do it securely. Otherwise, we have a privacy problem. And that privacy problem will get magnified as we go up the layers. If you can do analysis on the base layer, that gives a great degree of insight into what’s happening above.