When it comes to Bitcoin, the term “laundry” can have a few different meanings. First, there’s the literal definition of laundry: the process of cleaning dirty money.
This is what most people think of when they hear the term “Bitcoin laundry.” But there’s also a second, more figurative meaning of the term: the act of moving Bitcoins around in order to make them more difficult to trace.
The first definition is the more common one, and it refers to services that help people clean their Bitcoins. These services usually take one of two forms: they either mix your Bitcoins with other people’s Bitcoins (which makes it harder to track where your Bitcoins came from), or they convert your Bitcoins into another currency (which makes it harder to track how you spend your Bitcoins).
The second definition is less common, but it’s still important to understand. When we say that someone is “laundering” their Bitcoins, we mean that they’re trying to make it harder for someone to track where their Bitcoins came from or where they’re going.
There are a few different ways to do this, but the most common is to use multiple Bitcoin wallets. By using multiple wallets, a person can make it much harder for someone to track their Bitcoin transactions.
So, what is Bitcoin laundry? It’s simply the process of cleaning your dirty money, or making it more difficult to trace your Bitcoin transactions. Whether you’re using a service to mix your coins or you’re just using multiple wallets, you’re effectively laundering your Bitcoins.