I've always thought of "tainted coins" as a BS concept unless someone has just pulled off a huge hack and then tries to exchange them (or some similar scenario where there's little doubt someone has coins they shouldn't have access to). And I've also wondered if there's going to be a point at which most of the bitcoin out there is going to be related to dirty coins, no matter how many degrees of separation there might be.
Even a huge hack doesn't justify the concept. The stolen money gets confiscated and goes back to circulation. There's no dirty money. Why shouldn't the government burn the billions of drug money if they think this concept is valid?
These hypocrite exchanges should stop this stupidity. They won't allow the owner to get the funds back because they're dirty and yet they mixed them with the funds of other users? And why did they accept the 50,000 coins from the German police which are seized from piracy? They're all dirty.
When Bitcoin becomes a global mainstream currency, it's going to be used by billions of people in billions of daily transactions. And, even this early, how many clean Satoshis do we only have?
