Fascinating. I never say they are untraceable. In fact, I wrote, “Bitcoin is only traceable within the system to a certain extent.” I then provide details about the extent to which they are, including a reference to an October 2013 academic paper that shows how some kinds of transactions can be unpeeled and tracked (to a surprising extent) but others can’t.
Recorded, traceable, and anonymous are different commodities. All transactions are recorded. It is possible to use change addresses in a way (described in that paper) to prevent easily or at all linking a sequence of transactions in and out. (Zerocoin would eliminate all connections between in and out transactions.)
Anonymity in the way you’re discussing it isn’t within the Bitcoin system, but rather an externality: can an association be made between an individual and a Bitcoin address, because, ultimately, the value has to be taken out of the system to be traded for goods and services. That’s increasingly less the case, the more companies accept Bitcoin for payment.
“There are no Tor-like mixmaster systems for Bitcoin”: There are, in fact, coin mixing operators, but they are unreliable or corrupt currently.
Jesus Christ, dude – read my own article.
