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Bitcoin mixers are solutions (software or services) that let users mix their coins with other users, in order to preserve their privacy.
While Bitcoin addresses are “pseudonymous” — meaning, they don’t, in themselves, reveal the identity of their owner — they can often still be linked to real-world identities. For example, if you withdraw bitcoin from an exchange where you’ve identified yourself, the exchange knows that the withdrawal address is yours. There are also more advanced techniques — such as blockchain analysis — to tie Bitcoin addresses to real-world identities. The next time coins move from these addresses, users risk revealing all sorts of personal information. Depending on how they spend the coins, they could reveal how many coins they own (even on other addresses), what they spend their money on, and more. By mixing their coins, users can obscure the ties between their Bitcoin addresses and real-world identities. This allows them to use Bitcoin more privately. |
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