- Feb 21, 2002
It's traceable if you ever convert it to actual currency (dollars). All exchanges where you can convert crypto to USD know your identity, so if you ever send crypto to an exchange to cash out federal government will know that that wallet belongs to you and they will know everything you've ever done with it. There is less of a privacy risk when it comes to person-to-person transactions because private citizens do not have access to the same resources as government, but as soon as you pay someone with crypto they will know how much money you have in that wallet, that in itself is a huge privacy issue that is just too onerous to deal with.so how again is it traceable? If i mine with a proxy (or buy bitcoins), then divide my wallet to multiple wallets using a diff one for each transaction its all traced easilY?
As applicable to governments banning mining, how can they ban mining? One is physically shutting down known mining farms, and two, shutting down miners ability to cash out. Mining farms would have to start laundering their profits like gold/diamond/drug cartels, unfortunately for them crypto being a public ledger it's much more difficult to launder crypto.