Initially, Bitcoin scrambling was known as a money-laundering method, used by criminals. Today, when people know that Bitcoin is not anonymous, they are using Bitcoin scrambling services to preserve their privacy.
Bitcoin and privacy
Every Bitcoin transaction is permanently recorded in the public ledger known as the Blockchain. Anyone can examine the Blockchain and all of its transactions, amounts, and Bitcoin addresses used.
If the Bitcoin address utilized in the transaction is ever associated with one's real-world identity, all the previous transactions could be traced back to their identity.
Therefore, to prevent third parties from recognizing your spending habits, it is essential to hide the spending transactions. And the most useful way to do so is by using a Bitcoin scrambler.
Bitcoin scramblers take one's coins, scramble them with other Bitcoins, and send scrambled coins to addresses of their choice. After using a Bitcoin scrambler, the tie between the original and scrambled Bitcoins gets removed. And that's what the point.
Bitcoin scrambler types
The principle of a Bitcoin scrambler is to remove the connection between the coins. Over the years, various anonymizing systems have been introduced. The most efficient is a Bitcoin anonymizer, followed by a cryptographical Bitcoin scrambler.
Bitcoin anonymizer takes advantage of a dedicated privacy coin. On the other hand, the Bitcoin scrambler mixes the coins cryptographically.
Anonymizer converts Bitcoins to privacy coin Monero, making them completely anonymous. Once anonymized, it goes on by turning Monero back to Bitcoins. Once the transaction is complete, the link between the initial Bitcoins and new Bitcoins is removed.
Anonymizing is the most effective way of erasing Bitcoin's history. The only downside of Bitcoin Anonymizer is its higher fee since it needs to cover the transaction fees as well as interchange fees. If you need additional privacy, however, the added cost is unquestionably worth it.
Bitcoin scrambler combines multiple payments from multiple spenders into a single transaction. This makes it difficult for other parties to determine which spender paid which recipient or recipients.
While Bitcoin scrambler does a great job when combining equal inputs and outputs, it is not so great when mixing unequal inputs. Let's say you send 1.2345 Bitcoins to a blender and receive the same amount back. The flow of the coins is easily predictable.
Should I use a Bitcoin scrambler?
Since every Bitcoin transaction is recorded in a public Blockchain, Bitcoin blending is essential for anyone who doesn't want anyone to recognize their spending habits.
Bitcoin blending is vital for anyone who uses free markets. A leak from Edward Snowden proved that the NSA had been tracking transactions from Silk Road extensively. Even though Silk Road is not in operation anymore, other free markets are still in service, and authorities actively monitor their transactions.
However, Bitcoin scrambling is not for criminals. It is for anyone who wants to protect their privacy. The Internet is full of hackers looking to seize delicate information and use it for wrongdoing. To avoid this, people use scramblers to defend themselves while transacting with Bitcoins.
Bitcoin scrambling is essential for enterprises that are performing large crypto transactions. Such businesses fancy to use Bitcoin scramblers to keep their dealings protected from the prying eyes of their competition.
Bitcoin scrambling is vital for wealthy Bitcoin owners who don't want others to know about their cryptocurrency assets. This is exceptionally critical in countries where abduction is widespread among criminal groups.
To crush freedom of speech, autocratic regimes around the world are continually monitoring reporters, bloggers, and influencers. Therefore, Bitcoin scrambling is essential for journalists who get compensated for their work without the regime knowing.
The reasons for using a Bitcoin scramblers are countless.
Are Bitcoin blenders safe?
Unfortunately, not all Bitcoin scramblers are safe. Poor security, weak encryption, and unprotected infrastructure are the most common issues that Bitcoin scramblers challenge.
Even though scramblers seem technically simple, creating a secure Bitcoin scrambler is not easy, and there are lots of things that can get misplaced.
Unfortunately, there is no way to check whether a Bitcoin scrambler is safe. Therefore, it is advised to get someone else's feedback or try scrambling a small amount before processing higher quantities.
The governments want to know your financial records, including cryptocurrencies. Therefore, services that hide cryptocurrency history are not welcome. And Bitcoin scramblers are not an exception.
Even though privacy is an elementary human right in most modern nations, the anonymity of your financial transactions is not acceptable.
With the increasing pressures, any Bitcoin scrambler can become a victim of a seizure by the authorities. To protect against such situations, Bitcoin scramblers remove their logs as soon as possible and, ideally, immediately a successful transaction.
Another temporary legal protection for Bitcoin scramblers is incorporating in a jurisdiction not required to implement the recent regulations. One such jurisdiction is Seychelles.
Scramblers and Bitcoin quality
A common problem with Bitcoin is that the previous owner's transactions can contaminate them.
Let's say someone uses Bitcoin to make a crime. To wipe the evidence, one uses a Bitcoin scrambler. Subsequently, someone else uses the same scrambler to anonymize the payment for an adult website. Since the criminal's Bitcoins could have contaminated the scrambler's pool, the person paying for an adult website could be "marked," or even blacklisted from that site.
To avoid this, Bitcoin scramblers should ban the use of their service to legalize illicit income, which is hard to execute.
Choosing a Bitcoin scrambler
With so many Bitcoin scramblers, it is quite challenging to choose the right one. Therefore, when picking a scrambler, you should ask these questions:
- Can you use the Bitcoin scrambler anonymously, without creating an account, and providing your details, such as email address?
- Does the Bitcoin scrambler offer an anonymous, dark web version?
- What are the minimum and maximum and amounts you can scramble?
- How many confirmations does the Bitcoin scrambler require?
- Does the Bitcoin scrambler support the delayed payout?
- Can the Bitcoin scrambler send the coins to multiple addresses?
- How long does the Bitcoin scrambler keep the logs?
- Can you check the status of the transaction?
- Does the Bitcoin scrambler provide customer support?
Best Bitcoin scrambler
So what are the best Bitcoin scramblers on the market today? There are numerous tools out there, so to choose the best one, we recommend you to check the list of services we recommend. However, before trying any scrambler, or anonymizer, make sure to start with a low amount, before processing higher volumes.