Mixers and the Fungibility of Bitcoin


Can a quantity of bitcoin be traded for another of equal value? The question of fungibility has long been a hotly debated point of contention when considering the future possibilities of the cryptocurrency. Now, with so-called "virgin" (freshly mined) bitcoins being offered for a premium price and calling bitcoins fungibility yet again, we consider the role that mixers can play in safeguaring the maturation of bitcoin as a currency.

Why would someone pay more for freshly mined bitcoins? It comes down to anonymity and financial security. It is well understood that bitcoin is not a privacy coin, and that it is possible to follow the transaction history of any person or individual coin. If you possess coins that are directly associated with criminal activity, you could be subject to investigation and those funds could be seized even if you received them legally and had nothing to do with the suspicious transactions. Some see paying extra for bitcoins that have no transaction history as the only way to avoid this risk, even if it means undermining the concept of bitcoin as a currency in the long run.

Bitcoin mixers offer a different solution. By mixing your coins regularly with a mixer that provides a certificate of authenticity, like Bitcoinmix, you can prove the origin of your coins without paying a premium, and jeopardizing the fungibility of bitcoin.