>but BTC is fully public and so money laundering, counterfeiting, and tax evasion both go away when we move to a public blockchain.
So you believe that all the public mixers are compromised? It's certainly possible, but even so, they clearly aren't publicly compromised, and as such, I'd argue that tracking down large amounts of money moved conventionally is easier than tracking down large amounts of money through the blockchain, as last I read, traditionally, btc was sent through mixers quite often.
If money laundering is illegal, and the owner of a BTC address sends money to a mixer, it's pretty easy for law enforcement to identify the person involved in money laundering.
If a person isn't linked to KYC in any way and the coins are anonyously owned, then it's a bit harder, but as BTC becomes more mainstream it becomes increasingly difficult to prevent most transactions from touching KYC-regulated accounts.
As a borderline anarchist I'm not arguing this is a great thing, but it nonetheless offers a much more efficient path to enforcing money laundering laws.
FWIW I suspect some are compromised. Also, mixing adds cost, and so even if money laundering happens but is heavily taxed by this additional cost there is some utility to the blockchain based system.
So you believe that all the public mixers are compromised? It's certainly possible, but even so, they clearly aren't publicly compromised, and as such, I'd argue that tracking down large amounts of money moved conventionally is easier than tracking down large amounts of money through the blockchain, as last I read, traditionally, btc was sent through mixers quite often.