You can't arrest someone for having a few hundred or even a few thousand dollars in cash in their pockets.
Posted By: Fullofterrors
Re: Cash leaves physical evidence, i wonder the implications wth bitcoin transfer - e
As I understand it, if you created your bitcoin account anonymously, you remain anonymous even though the transactions are completely traceable and verifiable. However, when you want to convert your bitcoins to cash, there may be a loss of anonymity, depending on the amount (and where you are, government regulation-wise). What I do not know is if, at cashout, your loss anonymity extends to all of your previous transactions.
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Real name: Mr. Fullofterrors; owns bitcoin account 12345 with a balance of ~$50,000;
12345 pays $300 to 98765; 12345 pays $260 to 99999; 12345 pays $300 to 56478; ...
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12345 needs $15,000 in cash so he, Mr. Fullofterrors, collects to dollars into his bank account.
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Can computer experts now connect Mr. Fullofterrors to all of the transactions on account 12345?
Even if they can, there is no way of knowing what was purchased unless they also know the real names of 98765, 99999, and 56478 unless they are de-anonymized.
