Following the Bitcoin trail

“Before the paranoid start dumping their Bitcoins, Ms Meiklejohn says that changes could be made to reduce the trail that her group followed. Mixing services, for instance, can take money from one party and return it using entirely an new key. ‘Those kinds of services would completely thwart our kind of analysis’, she says. But caveat emptor: in the team’s testing of four mixing services, one stole their money and another returned the same key. She says the trust required and volume necessary for mixing simply doesn’t yet exist. The fundamental problem is that ‘right now there are not enough ways to buy and sell Bitcoins,’ which means that it is difficult to take advantage of the underlying protocol’s anonymity.”

http://www.economist.com/blogs/babbage/2013/08/virtual-currency

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