As I understand things, the security and integrity of Bitcoin rely on the assumption that its hashing is “hard” in some sense. However, in the past, processing power has increased exponentially. This has made some problems solvable in a reasonable amount of time that were not solvable before. How does Bitcoin account for the possibility that processing power will continue to increase in the future?
Some services, such as bitcoinlaundry.com, claim that they can launder your bitcoins.
Since all bitcoin transactions are publicly logged, how is this done? Wouldn’t it be possible to trace back the transactions and find out the initial address?