Whenever a brand new Bitcoin mixing service launches, users will have to be careful when sending funds to this platform. The way Bitcoin mixers work is by holding onto customer funds, and distributing that money through a random list of addresses which will = eventually – return the funds to a wallet of your choice. Bitcloak is a new bitcoin mixing service which is only accessible through the TOR network, as with any mixing platforms some risks are always taken when using it.
Should You Trust Bitcloak for Bitcoin Mixing?
The obvious answer to this question is “absolutely not” as no one should ever trust a third party for controlling their funds, even if it is for a brief amount of time. Bitcloak will act as a custodian of user funds, as Bitcoin enthusiasts have to trust the site owner to safely send their funds to the designated wallet address. You must leverage the risk of trusting your funds to a third party for the reward of receiving mixed bitcoins.
Whether or not the Bitcloak owner has any intent of doing so, is very difficult to judge at the time of publication. Accessing the platform requires the usage of Tor, as the platform is using a .onion web address. Any service that lives outside of the realm of traditional internet should be greeted with a lot of skepticism, especially if that business model involves Bitcoin or any other financial means.
In the Bitcloak introduction post, the site owner mentions how there is a proof of wallets available to verify the funds is being transferred and whether or not the site is solvent. Users can choose between two different Bitcoin mixing options. The first option is traditional Bitcoin mixing, and clean funds is return to up to three different wallet addresses.
The second option lets users pay anonymously, allowing Bitcloak to send the payment for a particular transaction to a designated recipient. While such a feature may prove to be beneficial for making or receiving an appropriate payment, it remains to be seen if people have a need for this particular type of Bitcoin mixing. Bitcloak users will have to wait for one transaction confirmation before clean funds will be sent to their designated address(es).
All in all, the explanation for creating Bitcloak seems very plausible, but that’s the only positive thing one can say about this service for now. Granted, this may very well be an entirely legitimate service, but it is impossible to know for sure if – and for how long – this will be the case. As Bitcloak’s history grows, its reputation and trust level will also grow, but until then only time will tell.
If you liked this article follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin and altcoin price analysis and the latest cryptocurrency news.