we actually track a large list of digital currency, more and more each week and there is a ton of funding more than we'd ever expect being given for getting anything we need done, i dont see it really as an issue.. digital currency has been great for us
I'm very skeptical that you're tracing Monero. Unless you've broken ed25519, that is. In which case, you have better things to do than crack minor cryptocurrency transactions...
Ring signature size is still a problem. Yes, it masks the originating address of a transaction. But you know its 1 of N (currently 11 I think?). We know that most people buy coins from exchanges and then send them to their destination. An authority can simply subpoena every top exchange for users for whom any one of the addresses in the ring signature belong to. That's 11 addresses. If we assume the user may have made an intermediate transaction, we can go up two levels. That's 11^2 addresses. Three levels, 11^3. Given normal people's typical usage, monero's anonymity falls to broad subpoena power.
Once you tumble your coins in the Monero blockchain, it's practically untraceable. Every transaction makes it harder and harder for authorities to track.
At this point in time, consensus is that Monero is safe.