There have been many discussions on what the ideal Bitcoin should be. This is why the Bitcoin community has morphed from a single network created by Nakamoto Satoshi to hundreds of coins with different orientations and objectives.
Satoshi Nakamoto visualized a cryptocurrency that would replace fiat as well as have further advantages such as being easy to spend bitcoin and be portable, effectively eliminating the need for physical money.
However, reality has shown that Bitcoin is nothing close to being anonymous, a feature possessed by fiat. This missing feature is the reason why Bitcoin mixers such as Bitcoinmix.org thrive.
Money should be anonymous, at least fiat is anonymous. That is why when people are making transactions that they do not want to be traced, they naturally prefer fiat.
For instance, if I work as an agent for the Mossad, I would demand to be paid in fiat and possibly avoid the bank since large volume transactions will be traceable and attract attention.
The reality is that there are many types of jobs and businesses that are legal and legitimate that does not need the parties involved to make themselves obvious. The fact that Bitcoin is not anonymous makes it inappropriate for such transactions.
Going further, we are aware that we live in a society in which people are fast losing their privacy. With the government working hard at being in control of all facets of people’s lives, inventions which give back to the people a measure of their privacy will have greater appeal than those that take that privacy away such as Bitcoin.
Mainstream adoption of Bitcoin can be enhanced through the realization and perception that the digital currency is valuable and private. Users should be confident that their transaction history will not easily be accessible to people who would exploit it to their detriment.
Though there are many who think that a private Bitcoin would enhance criminal activities such as tax evasion, the fact remains that the real essence of the gravitation towards the coin is to gain control of the individual user’s finances.
In any case, Bitcoin mixers are effectively playing the role of anonymizing Bitcoin and giving users the privacy they desire.
There is no hope in the interim that Bitcoin will be re-coded to become anonymous. Speaking on the issue, Franky a Bitcoin expert said that anonymizing Bitcoin should not be about hiding IDs.
“Real funny part is a certain dev that says make it private using provenance breaking code. Under the pretense of reducing mixing service spam actually runs a mixer and loves spamming.
He proposed a code tweak that turns a ~230byte tx into a 1kb tx but needs a couple of them to be fully anonymous. Which ends up as more bloat than just mixing spam does (revealing his motives are not about bloat reduction but ruining provenance)”
This implies that Bitcoin mixers shall continue to play the needed role of helping protect the privacy of Bitcoin users.