Legal stuff says we all should have privacy, right? Offline and online, but honestly, most people will be tracked anyway. The financial world is super easy to watch, since everyone is using money daily. Bitcoin kinda shakes things up, though. Its transactions are pseudonymous, which means yeah, they can be traced through addresses or public keys.
Not really accurate, my dude. If the receiver has a 7 BTC input and the sender is spending 5 BTC, they won’t split that input up. Instead, they create a single 12 BTC output. Payjoins are actually cheaper in fees compared to typical on-chain deals and they create overlapping histories which is good for privacy. But remember, regular coinjoins can involve more than 2 participants, so for max privacy, those can be way better if there's enough liquidity.
Check this out: if Bob avoids address reuse, the observer might think he had 40k BTC based on a CoinJoin example. But it’s tricky; you can’t tell if it was just a CoinJoin or a PayJoin. It really comes down to how the transaction is structured. Like, a PSBT can start from the recipient, spending some small amount to an output.
Think of Payjoin like making a private payment to someone else, and Coinjoin is more like sending money to yourself. So, Payjoins can be tricky due to the need for interaction. When you’re buying stuff, who’s gonna want to chat with a merchant just to keep their coins private? That might make things more expensive for merchants who might not even wanna deal with it.