I noticed a few sources around the net accepting bitcoin and advertising coinbase as a way of paying. It works like this. You get a coinbase account, pay via credit card or bank transfer and purchase bitcoin which you then transfer to the source for payment.
A few problems here. Bitcoin runs on the blockchain and is completely traceable by this means. Also Coinbase is what is known as KYC customer compliance company and works with the feds. For proof of this you can read the evidence documents in the federal court trial here http://ia801506.us.archive.org/27/items/gov.uscourts.nysd.422824/gov.uscourts.nysd.422824.232.8.pdf
this is due the fact ANY company doing business within the US with bitcoin is a money transmitter and falls under those laws.
Excerpt One:
the domestic Bitcoin exchanges were fighting cooperating, MtGox was surprisingly safe, and Coinbase was actively rolling over to hand over user information (and PayPal but we knew that)
Excerpt Two:
...One thing to be cognizant of, there's a lean on the domestic BTC exchanges to cooperate. There have been informal discussions in the last few months to develop working relationship with Coinbase (I know for a fact). After DHS hit Gox, even the boogeyman of a FinCEN violation is enough to mortify any of the btc guys. Anyone moving large sums of BTC will be open to scrutiny. I reference Coinbase because I know there was a series of meetings with Compliance at Coinbase. That can only mean one thing& BUT, that does not mean that the full on arm twisting by Treasury is going to be utilized to track black market vendors. They're more concerned (and justify) their desire for access due to terrorism. Most of the black market economy is essentially low hanging fruit in comparison to terror funding. But if OC activity is disrupted and theres political mileage for DoJ, the wide dragnet serves a multi faceted purpose.
Another problem is coinbase also has a history of closing accounts, and tracking users spending. Coinbase Is Tracking How Users Spend Their Bitcoins
Can you safely buy items with bitcoin and purchase? Yes. Is it easy? Not really. First you need to keep a wallet secure like mycellium bitcoin wallet. you can download that on your phone.
You would need to purchase bitcoin via local trader (on mycellium wallet) or in small amount if by credit card. Then transfer the funds to mycellium wallet A. Go to https://shapeshift.io/ buy Monero (another alternate coin) and then with the Monero buy back bitcoin and send to mycellium wallet B.
What this does is take the trackable bitcoin OFF the blockchain and you get new bitcoins into your fresh wallet. then you can sell or cash it out.
Make sure to protect yourself if you dont buy bitcoin anon cause if not your at the mercy of the sponsor whether they know what they are doing and if they get caught, if they feds track back to you or not.
A few problems here. Bitcoin runs on the blockchain and is completely traceable by this means. Also Coinbase is what is known as KYC customer compliance company and works with the feds. For proof of this you can read the evidence documents in the federal court trial here http://ia801506.us.archive.org/27/items/gov.uscourts.nysd.422824/gov.uscourts.nysd.422824.232.8.pdf
this is due the fact ANY company doing business within the US with bitcoin is a money transmitter and falls under those laws.
Excerpt One:
the domestic Bitcoin exchanges were fighting cooperating, MtGox was surprisingly safe, and Coinbase was actively rolling over to hand over user information (and PayPal but we knew that)
Excerpt Two:
...One thing to be cognizant of, there's a lean on the domestic BTC exchanges to cooperate. There have been informal discussions in the last few months to develop working relationship with Coinbase (I know for a fact). After DHS hit Gox, even the boogeyman of a FinCEN violation is enough to mortify any of the btc guys. Anyone moving large sums of BTC will be open to scrutiny. I reference Coinbase because I know there was a series of meetings with Compliance at Coinbase. That can only mean one thing& BUT, that does not mean that the full on arm twisting by Treasury is going to be utilized to track black market vendors. They're more concerned (and justify) their desire for access due to terrorism. Most of the black market economy is essentially low hanging fruit in comparison to terror funding. But if OC activity is disrupted and theres political mileage for DoJ, the wide dragnet serves a multi faceted purpose.
Another problem is coinbase also has a history of closing accounts, and tracking users spending. Coinbase Is Tracking How Users Spend Their Bitcoins
Can you safely buy items with bitcoin and purchase? Yes. Is it easy? Not really. First you need to keep a wallet secure like mycellium bitcoin wallet. you can download that on your phone.
You would need to purchase bitcoin via local trader (on mycellium wallet) or in small amount if by credit card. Then transfer the funds to mycellium wallet A. Go to https://shapeshift.io/ buy Monero (another alternate coin) and then with the Monero buy back bitcoin and send to mycellium wallet B.
What this does is take the trackable bitcoin OFF the blockchain and you get new bitcoins into your fresh wallet. then you can sell or cash it out.
Make sure to protect yourself if you dont buy bitcoin anon cause if not your at the mercy of the sponsor whether they know what they are doing and if they get caught, if they feds track back to you or not.
