Bitcoin anonymity broken. You have to pay tax

[ismart1]

The anonymity is something that can be used for both good and bad reasons, but since people think that crypto is a "nobody tracks me" world they think is a safe haven for criminal activities. Losing part of your profit to the IRS isn´t that bad compared to losing all your hard earned bitcoin to a hacker who invade your privacy, steal your private key and now are spending your money. If they can be tracked and put behind bars as well, then the lack of anonymity may also have a positive side.

[jekjekman]

For as long that there is an anonymity with Bitcoin then it is fine with me and for some other people as it is true that there is no 100% anonymous thing in this world because someone will go find a way to know such things if they want to. If this news is true then I think some people that uses Bitcoin to launder their moneys in the real world will think a much more effective way to hide their assets.

Let's see what will happen with this anonymity issues with Bitcoin as it will may upgrade by the developers soon.

[Iranus]

There is no definitive point at which Bitcoin's anonymity (which by the way never existed at all) is "broken".

Bitcoin's pseudonymity is the responsibility of the user.  It's common sense that blockchain analysis can be used and that governments may use it to help with tax.

Your arguments rely on a series of straw man fallacies and surface-level analysis which you then shove down our throats quite intensively.

[miyaka26]

The IRS has broken Bitcoin anonymity.

Apart from the obvious impact on criminals, this also means that all Bitcoin investors will be forced to pay taxes of their earnings. And be fined for past Bitcoin earnings they have not reported.

https://www.technocracy.news/index.php/2017/08/28/bitcoin-loses-anonymity-irs-tracks-bitcoiners-new-blockchain-analysis-tools/

If that article is true about being fined to bitcoin holders for their past earnings, that would be a headache and that would be a large amount of tax most for the larger holders and investors of the btc that is bad news for us.

But the good news is the proper regulation for the petty criminals who are using blockchain for their own illegal transactions and their hidden wealth will be revealed by the new analysis tool of IRS. I think the use of bitcoin anonymity service like VPN on the internet will be popular if the tool will be implemented thus countering the IRS tracker.

[scottykarate]

While I agree that taxes need to be paid, maybe the IRS should focus on the large tax cheats that already exist and openly cheat versus the comparatively low number of crypto owners who are mostly holding.
Oh, right, they're too busy using their antiquated infrastructure and systems to be bothered to pay for that.

This was likely actually done by the Department of Treasury anyway, which is good. They're the ones who need to be addressing any issues with criminality and crypto.
That is something I have no issue with.
Illegal activity will be moved to the anonymous coins and spread out amongst them, unfortunately.

[Karakyli]

I think that no one imagined that bitkoyn would never be taxed. Everyone must pay tax on profits from their activities. If we hide behind anonymity and evade paying taxes, the state will simply be forced to prohibit bitokoyn. Therefore, if we want the state to be loyal to bitkoyu, we must pay a tax so that the state functions and bitokoyn functions. In addition, if the tax is exchanged automatically for the usual money without the identification of identification data, then anonymity will be respected.

[etsonarrantes]

If the tax come to Bitcoin, i will start to feel better and safer. I always think about that. Because when we pay tax the bitcoin will become legalised. I wait for the tax to come.

[razzbee]

Actually this should worry those who uses bitcoin for illegal stuff, also bitcoin was never meant for tax free..

[steven.spearman]

The IRS is always greedy in any case, and they start teasing bitcoin. This needs further action in order for the IRS to not intervene more deeply.

[Tyrantt]

Actually this should worry those who uses bitcoin for illegal stuff, also bitcoin was never meant for tax free..

That's very true, the illegal part. With this happening, it may just turn people away from using bitcoin on deepweb and switch to some alt-coin andclear bitcoins name for what is mostly known, a coin that's been used for nothing else than for drugs and other illegal stuff. Also with this about anonymity, less countries might be banning bitcoin with taxing available.

[chicobr]

I think it can't happen. Bitcoin is built based on Blockchain technology. No one can change or remove it. Dont worry

[Rahar02]

Bitcoin transactions always recorded in blockchain and everyone can see it, that's why bitcoin isn't fully anonymous but pseudonymous. However, bitcoin users can still be anonymous as long as you are not dealing with exchanges which require id verification. Government have to regulate cryptocurrencies as Million of dollars involved in this environment, and every country has a different perspective about crypto regulations. If you're a bitcoiners who lives in the US, then the IRS has required you to pay taxes for capital gains, but if you live in Japan, no need to pay taxes for capital gains.

[cryp24x]

The IRS has broken Bitcoin anonymity.

Apart from the obvious impact on criminals, this also means that all Bitcoin investors will be forced to pay taxes of their earnings. And be fined for past Bitcoin earnings they have not reported.

https://www.technocracy.news/index.php/2017/08/28/bitcoin-loses-anonymity-irs-tracks-bitcoiners-new-blockchain-analysis-tools/

First, Bitcoin is really not anonymous, it is instead a crystal clear transparent and if you have linked your identity to an address, you will definitely be found.  I do not mind paying taxes, it is our duty as responsible citizen to the government.  I think there will be no problem if we just give what is due to the government.  After all we are under their "protection". 

[JanpriX]

This made me cringe in a very bad way and turned my bright thanksgiving day to a not-so-good one. I just can't believe that we seek anonymity and use BTC to cater that need but the government just barged in and deliver a sophisticated blockchain tracking tool to get our taxes so that their already-fat bank accounts become bigger and bigger. I know that they are just around the corner waiting for the best opportunity to do this but I didn't expect it to be this early. People around the globe are just starting to to take notice of BTC and out the blue, IRS made an entrance saying that they'll tax us. Shoutout to the company that made the tracking tool and sold it to the IRS. Hopefully, the money that you made out of it will treat you and your family better.  

[filharvey]

Bitcoin is only pseudo anonymous and not fully anonymous.It was already created in a manner so that all the transactions are registered in a public ledger.It was already an expected move from the governments that one day they would start tracking bitcoin transactions for taxing purpose.Bitcoin has grown in to a very big business and so,the governments would not be willing to loose such huge revenues from taxing bitcoin earnings.

[LancienMaleAlpha]

One step closer to restricting people who hold bitcoins and make them pay taxes in future. Of course, exchanges who require driver license or your passport before being able to trade make it clear that there's no anonymity in the blockchain. Blockchain itself is anonymous. But people can restrict its usage to make other's track you.

[Ucy]

I doubt tracking Bitcoin will be that easy for governments if you consider the availability of mixing technologies. Wealthy & skillful people could even use better tech to make things impossible to track.

I guess the only way governments may track Bitcoin successfully is at the "point of Entry & Exit"  i.e when people buy & sell through legal exchanges.

[Red-Apple]

I doubt tracking Bitcoin will be that easy for governments if you consider the availability of mixing technologies. Wealthy & skillful people could even use better tech to make things impossible to track.

nothing about bitcoin anonymity has changed. it is still not-anonymous as before.
and not much has changed about the ways they can track bitcoin transactions. the same methods for chain analysis still apply as they were applying in 2009!

it's just that OP is trolling because he bought bitcoin at $7500 and sold based on some FUD in the dip @$5500 and now he is butthurt because price is rising

[meanwords]

From what I've learned. Bitcoin anonymity isn't broken, it is stated in Bitcoin.org that Bitcoin is not completely anonymous at all from the start, meaning, some government can still track you because of the transactions in blockchain. Well, you can still get anonymous depending on how you use Bitcoin.

[warrior333]

The anonymity of bitcoin is a fairy tale. I don't believe in it. We can always track our online activities. Almost all bitcoin users exchange them for Fiat to make purchases in stores. These transactions easier to track. Some exchanges and online wallets require you to provide a passport for registration. We are all under the hood.