> No real way to prove where your bitcoin came from.
That's exactly the problem. It doesn't help if your bitcoins are untraceable, your bank is still going to be suspicious when you deposit $1m out of nowhere from an exchange in order to buy a house. This is the problem the DNM sellers have: they have all this money from Bitcoin, and it is inherently suspicious since they can't account for where it came from and how they earned it legitimately.
That's exactly the problem. It doesn't help if your bitcoins are untraceable, your bank is still going to be suspicious when you deposit $1m out of nowhere from an exchange in order to buy a house. This is the problem the DNM sellers have: they have all this money from Bitcoin, and it is inherently suspicious since they can't account for where it came from and how they earned it legitimately.