Bitcoin & Exchanges , contradiction ?

[RappelzReborn]

Most of people that use bitcoin their obvious answer probably is going to be "because it's annonymus and don't need my real informations and my account don't get limited" when you ask them why do you use Bitcoin .
But most of them also use Exchange to trade their bitcoin and most of those exchange websites asks for ID or passport verification and residence and some other real informations , so isn't this a contradiction     don't exchange defeats the purpose of bitcoin

[1714808265]

1714808265

[AtheistAKASaneBrain]

Most of people that use bitcoin their obvious answer probably is going to be "because it's annonymus and don't need my real informations and my account don't get limited" when you ask them why do you use Bitcoin .
But most of them also use Exchange to trade their bitcoin and most of those exchange websites asks for ID or passport verification and residence and some other real informations , so isn't this a contradiction    don't exchange defeats the purpose of bitcoin

Yes it kinda does, that's why there are people working in p2p exchanges like coinffeine, so we can eliminate the middle men and only exchange with an individual instead of handling your data to an institution.
At the begining you only needed credentials when you deposited fiat, but I think its clear now (looking at what happened with poloniex) that we are approaching an era of control where even if you only deal with cryptocurrencies only, you'll need to show your credentials to deposit and withdraw specially past X amount. I really hope they come up with ways to circumvent this bullshit.

[achow101]

It kind of does, but that is why there are some exchanges and peer exchanges that allow you to anonymously buy bitcoin. You can use something like localbitcoins to buy bitcoin anonymously.

[RappelzReborn]

It kind of does, but that is why there are some exchanges and peer exchanges that allow you to anonymously buy bitcoin. You can use something like localbitcoins to buy bitcoin anonymously.

I know but I meant most of them
Even Lending platforms like BTCJam which is Peer to peer , right ? and they ask for shitload of informations then even if you get scammed .. well you get scammed nothing happens after that . I don't see why they request those sensitive informations in they don't do anything with them.

[Ayle56]

It kind of does, but that is why there are some exchanges and peer exchanges that allow you to anonymously buy bitcoin. You can use something like localbitcoins to buy bitcoin anonymously.

I know but I meant most of them
Even Lending platforms like BTCJam which is Peer to peer , right ? and they ask for shitload of informations then even if you get scammed .. well you get scammed nothing happens after that . I don't see why they request those sensitive informations in they don't do anything with them.

It's because government regulations force them to ask for ID, proof of residence, and bank account details. Most exchanges could get prosecuted if they didn't gather that information. There are some exchanges like btc-e that get round the regulations because nobody knows who runs them or which country they are located in.

[Amph]

not all exchange ask id at all, many are only akisng it, if you deal with a great amount of money, otherwise if you do not exceed their ceiling(usually around $500-$1000) you are free to operate without providing any id of any kind

but your anonymity is still in trouble if you don't work on it with other service or with address ramification and any sort of deception

[Dire]

Yes it kinda does, that's why there are people working in p2p exchanges like coinffeine, so we can eliminate the middle men and only exchange with an individual instead of handling your data to an institution.

Coinffeine is a bad example. They only use Okaypay, and no matter which way you skewer Okaypay, you've still already given all your details one way or another. Sure, maybe Okaypay has it instead of Coinffeine, but it all boils down to the same thing really.

Okaypay can be somewhat arcane too. They have weird payment options that most people have never heard of, and one way or another, they are tied to your ID. Sometimes all you want is Paypal>Bitcoin, and that's it. Sure you give your ID but at least it's simple.

Still now in 2015 you can't find a place you can simply open an account with email and a password and buy Bitcoin, yet you can buy gold anywhere.

At least Bittrex is still keeping it real without all the ID/proof of address lark. Shame we can't buy Bitcoin from there though.

[Argwai96]

not all exchange ask id at all, many are only akisng it, if you deal with a great amount of money, otherwise if you do not exceed their ceiling(usually around $500-$1000) you are free to operate without providing any id of any kind

but your anonymity is still in trouble if you don't work on it with other service or with address ramification and any sort of deception

Mostly like governments breathing down the exchanges neck to know whos moving the money, we could all play with in the legal limits or the exchanges rules, the point here why do bitcoiners have to exchange bitcoin with in a exchange, why not use it to pay for things.

we are all still in love with fiat and the fiat way of life.

[Hazir]

not all exchange ask id at all, many are only akisng it, if you deal with a great amount of money, otherwise if you do not exceed their ceiling(usually around $500-$1000) you are free to operate without providing any id of any kind

but your anonymity is still in trouble if you don't work on it with other service or with address ramification and any sort of deception

Can you name a few exchanges which don't ask you for your ID and credentials? Because from my experience they all want to know your name, address and other informations -> then you can trade coins.
And if you reach certain level of processed transactions (i.e. you sell bitcoins for more than $1000) then exchange will ask you for full scans of your IDs.

[edric]

Most of people that use bitcoin their obvious answer probably is going to be "because it's annonymus and don't need my real informations and my account don't get limited" when you ask them why do you use Bitcoin .
But most of them also use Exchange to trade their bitcoin and most of those exchange websites asks for ID or passport verification and residence and some other real informations , so isn't this a contradiction     don't exchange defeats the purpose of bitcoin

Absolutely. At localbitcoins, you also have to give your bank details to the buyer for payment. So it does not remain anonymous at all. But that is not bitcoin's fault. It is the users fault to use it as an exchange commodity instead of a currency.

[achow101]

Most of people that use bitcoin their obvious answer probably is going to be "because it's annonymus and don't need my real informations and my account don't get limited" when you ask them why do you use Bitcoin .
But most of them also use Exchange to trade their bitcoin and most of those exchange websites asks for ID or passport verification and residence and some other real informations , so isn't this a contradiction     don't exchange defeats the purpose of bitcoin

Absolutely. At localbitcoins, you also have to give your bank details to the buyer for payment. So it does not remain anonymous at all. But that is not bitcoin's fault. It is the users fault to use it as an exchange commodity instead of a currency.

Not necessarily. With localbitcoins, I can buy using cash-in-mail. There doesn't need to be a return address either so that is completely anonymous. I can also buy using gift cards and reload cards with cash to exchange for BTC so my name and id is never associated.

[MicroGuy]

Most of people that use bitcoin their obvious answer probably is going to be "because it's annonymus and don't need my real informations and my account don't get limited" when you ask them why do you use Bitcoin .

I don't think anonymity is the primary factor.

There are two reason that people use Bitcoin, 1.) as a speculative investment, and 2.) to buy things they couldn't otherwise buy.

[Hazir]

Most of people that use bitcoin their obvious answer probably is going to be "because it's annonymus and don't need my real informations and my account don't get limited" when you ask them why do you use Bitcoin .

I don't think anonymity is the primary factor.

There are two reason that people use Bitcoin, 1.) as a speculative investment, and 2.) to buy things they couldn't otherwise buy.

And what things you can't buy with standard dollars or euros? Are you suggesting that Black Markets are primarily the main force of Bitcoin growth?
Because I found many things I can't buy with bitcoin yet, and almost none exclusive items obtainable only for bitcoin.

If you don't think anonymity is not important you would be glad when you receive official letter from Inland Revenue, just because they got your IDs from bitcoin exchange.

[jeannemadrigal2]

Most of people that use bitcoin their obvious answer probably is going to be "because it's annonymus and don't need my real informations and my account don't get limited" when you ask them why do you use Bitcoin .

I don't think anonymity is the primary factor.

There are two reason that people use Bitcoin, 1.) as a speculative investment, and 2.) to buy things they couldn't otherwise buy.

For me there is a third reason, that the banks are the great Satan of our day.  If the average person bothered to find out what the banks are doing there would blood in the streets.  Assuming the average person can understand "complex" things like derivatives and bribery.

Actually I don't care to be anonymous from the government, and I will pay taxes on my bitcoin things.  I would love to dodge taxes but uncle sam has a big dick and he never uses lube.

If I ever have lots of bitcoins (knock on the wood) I will use a mixer, but this is not to hide from governments but to hide from thieves finding my personal information and trying to rob or hack me.  I hope that some day I have this problem

[achow101]

I don't think anonymity is the primary factor.

There are two reason that people use Bitcoin, 1.) as a speculative investment, and 2.) to buy things they couldn't otherwise buy.

For a lot of people anonymity is a very important factor. There are more than two reasons that people use Bitcoin, and your second reason is not valid. I can buy pretty much anything with USD that I could buy with Bitcoin. However, I use Bitcoin because it is more convenient than a credit card. No need to fill out information about my home address and stuff, just copy and paste a single Bitcoin address. I also use Bitcoin because I can buy tons of things at a discount. People are willing to pay a premium to get Bitcoin, and thus I can get myself a nice discount on stuff that I want.

[Marbit]

Most of people that use bitcoin their obvious answer probably is going to be "because it's annonymus and don't need my real informations and my account don't get limited" when you ask them why do you use Bitcoin .
But most of them also use Exchange to trade their bitcoin and most of those exchange websites asks for ID or passport verification and residence and some other real informations , so isn't this a contradiction    don't exchange defeats the purpose of bitcoin

Anonymity isn't the only thing bitcoin has to offer, it's the security and the de-centralized nature is what has more relevance in my personal opinion.
Block chain is the novelty provided by Satoshi, not anonymity. But hey, that's just me

[Amph]

not all exchange ask id at all, many are only akisng it, if you deal with a great amount of money, otherwise if you do not exceed their ceiling(usually around $500-$1000) you are free to operate without providing any id of any kind

but your anonymity is still in trouble if you don't work on it with other service or with address ramification and any sort of deception

Can you name a few exchanges which don't ask you for your ID and credentials? Because from my experience they all want to know your name, address and other informations -> then you can trade coins.
And if you reach certain level of processed transactions (i.e. you sell bitcoins for more than $1000) then exchange will ask you for full scans of your IDs.

well that it's not an id, for ID i mean your identity card or proof of resistance, if they ask you your name or address you can put fake one, no problem there

the problem is when you need to attach a bank account to your trading account, because at that point you need to put your real name, bu still there is nothing that say that my name is actually that, if i don't provide an ID(card identity like passport driver's licence ecc...)

[bitnanigans]

The issue is when fiat money (or currency in general) becomes involved, there are all sorts of systems and legislation in place, because the governments always want to control money. If it was possible to exchange bitcoin for something else of value, perhaps identification won't be required?

[daddybios]

There are many exchanges which do not require personal data. And there are many objects with how to exchange Bitcoins for real money. I use these.
But there are people who do not hide their identity and origin of the money - they do not care.
Everyone decides for himself. Anyone who wants to remain anonymous - that will remain anonymous.

[RappelzReborn]

There are many exchanges which do not require personal data. And there are many objects with how to exchange Bitcoins for real money. I use these.
But there are people who do not hide their identity and origin of the money - they do not care.
Everyone decides for himself. Anyone who wants to remain anonymous - that will remain anonymous.

Mind giving some names and some links because all the exchange that I knew so far require either Residence + ID/passport or simply ID/Passport so you can start exchanging .
Only way I use to exchange to avoid those things is on forums like here on the currency exchange section or on other forums with the same section . that's the only solution