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Comment by zmanian | Hacker News Reader

Seems like solid evidence that the reason the US govt is so comfortable with Bitcoin is that they have a handle on anonymizing the blockchain as needed.

Also maybe an example of crypto over-confidence.

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government loves bitcoin. credit cards are very traceable. cash is fairly traceable, but the moment bitcoins are used to get real goods theyre completely traceable. add redlisting and upcoming ca authorities to the mix and bitcoin is a governments wet dream

This is simply not true. Public != traceable. Please read about any of the many methods for securely anonymizing BTC. Coinjoin is a good example.

CoInvalidation will probably never be even close to implemented, and the proposed usage of x.509 certs has nothing to do with anonymity or privacy.

Please read about any of the many methods for securely anonymizing BTC.

All of which would be considered money laundering, yes?

And any technical solution wouldn't?

Only traceable if you can match addresses to identities otherwise you follow coins around the blockchain in a circle

I just read the whole criminal complaint (http://www.scribd.com/doc/202555785/United-States-vs-Charles...) and I don't believe the blockchain is mentioned a single time. Most of the investigation was based on email exchanges between the defendants and inspection of the Silk Road's messaging system.

This had nothing to do with the blockchain, read the indictment: the undercover agent bought from BTCKing, was given a bank account, and looked up the bank account's info. That's pretty much end of story there. The rest is icing or getting Shrem's emails to nail him as an accomplice.

Obligatory XKCD reference: http://xkcd.com/538/

Except for that the government still can't use torture in most cases.

You'd be surprised. Especially if those laundering money via Bitcoin are also suspected of helping bad guys and such.

No, but they can use legal intimidation, and that's worked pretty well in the past.

You trust the USgov? I don't. They can do whatever they want as long as they don't get caught; and sometimes even when that happens.... e.g. NSA.

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