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Amongst other things, altcoins and anonymous exchanges are perfect for bitcoin laundering. For example, the thief of Sheep marketplace instead of tumbling his coins endlessly through the blockchain (and being watched doing so) could've just waited for an anonymous exchange to open that he could've deposited into and and bought new altcoins (maybe he could even setup the exchange.) On the other hand, people that had their coins stolen could've owned such an exchange and tracked the thief's altcoins out of the exchange.

But every altcoin has a set of pro and cons. They're just like flavours of Linux, and how hard is it to switch over as a miner, user or admin? The real power of altcoins how I see it will come when a second generation of altcoins comes into existence. Perhaps some way of retracting stolen or lost coins would be an interesting feature, perhaps tying coins to an email address for approval of spending or a resending of lost keys.




> Amongst other things, altcoins and anonymous exchanges are perfect for bitcoin laundering. For example, the thief of Sheep marketplace instead of tumbling his coins endlessly through the blockchain (and being watched doing so) could've just waited for an anonymous exchange to open that he could've deposited into and and bought new altcoins (maybe he could even setup the exchange.) On the other hand, people that had their coins stolen could've owned such an exchange and tracked the thief's altcoins out of the exchange.

At first I thought you might really be onto something on this, but you aren't.

To put it simply: BTC->LTC at ex1 and then ex1->ex2 and then LTC->BTC is no more anonymous than BTC->BTC at ex1 and then ex1->ex2 and then BTC->BTC.

In both cases the two exchanges have to collaborate to reveal your identity. But in one case they have two be aware of 2 blockchains instead of 1. No big deal.




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