Enhancements in Bitcoin's Privacy Features

When Bitcoin first came out, the cypherpunks had concerns about its privacy and scalability issues. The whitepaper even touches on it in section 10, suggesting that using a new address for each transaction is just a starting point. But even that falls apart when you have multiple inputs in a transaction. Plus, if the sender's inputs exceed the payment amount, the receiver can track the sender's future transactions, 'cause they have to create a change output.

Totally agree. You can't really hide ownership if you’re spending coins from like 10 addresses. It’s pretty much a dead giveaway. You’d need to do some serious mixing or coinjoining, but that takes time and money... the price of privacy, right? And some exchanges are tagging coinjoined coins as risky for AML, so keep that in mind before sending to a major exchange.

I've never had any issues with exchanges not accepting coinjoined coins. If they do, that’s on them, not coinjoin. It’s not like they’re official rules or anything.

I get what you mean, but maybe you just haven't faced that situation yet with exchanges you've used before. Just a word of advice always check the AML score if you’re trying a new exchange. Better safe than sorry, right? Losing coins over AML problems isn’t fun.

Using Lightning channels is a great way around this whole mess. It basically sends your coins directly, so no one can track anything. Just a heads up though, steer clear of Cake Wallet. They’ll take your coins since they rely on Spark, which is custodial and lacks privacy features.

Check this out: https://delvingbitcoin.org/t/the-four-horsemen/2728. It’s a solid resource on this stuff.