The shutting down of Bitmixer.io, the largest Bitcoin mixing website, fuels speculation that it is avoiding unpleasant action from law enforcers. The sudden shutdown of the website has been received with mixed reactions. In a statement, the largest bitcoin mixer said that the reputation of the cryptocurrency was on the line and did not want to be party to the general perception that Bitcoin is only used for illegal transactions.
How The Platform Works
Bitcoin transactions are logged in a ledger for the public to trace. This could put cryptocurrencies transactions at a risk of being used for illegal or innocent purposes. In addition, it becomes open for investigative agencies to scrutinize the information and trace it back to them. This could lead to unpleasant consequences on their part.
To free themselves from such hassle, people use a bitcoin mixer to give them an option to convert their Bitcoin wealth into a mixed currency basket which cannot be traced and protects their privacy. Technically, bitcoin mixing works like a barter. Your Bitcoins will be merged in a pool and assigned to another holder of a basket on the site. With bitcoin mixing services, it is like putting your currencies in a trust.
Why Bitmixer Closed?
It is still unclear why Bitmixer.io closed its operations. Speculations are that it is under extreme pressure from authorities. The website’s statement reveals that their action might be replicated by their rival sites offering mixing services as well. Analysts reveal a connection between Bitmixer.io and Alpha Bay, which was recently shut down through the concerted efforts of law enforcement agencies in the United States, Canada, and Thailand.
Additional Customers for Other Sites
The shutting down of Bitmixer.io could mean additional clients for other sites. As Bitcoins continue to increase, there has been a number of websites offering similar mixing service but Bitcoin.io is the largest provider. As law enforcement agencies continues a crackdown of such activities, more Bitcoin mixing websites are likely to be closed down as well.
The popularity of cryptocurrencies especially Bitcoin continues to grow. It is even likely that governments will accept and approve the use of digital currencies as an alternative payment mode for buying products and availing services.
If the closing down of Bitmixer.io ends up cleaning the system resulting to more transparent and above board transactions, then it could be a very appealing step. However, the actual results may not become evident until after a few more weeks.
