How anonymous is Bitcoin?

[Litecoindigger]

You may have asked if using Bitcoin is really anonymous. Let’s try to answer this question today.

Compared to Bitcoin, you can use cash for all sorts of business transactions, but it's not easy to understand where that money comes from or who it actually earns. The best advantage of cash is therefore: If you pay with cash you cannot draw any conclusions about the individual who used the cash.

Another thing is Bitcoin, where all transactions are encrypted and also, without any personal data, transmitted via a decentralized transaction system (the so-called blockchain). You can watch all transactions but have no chance to figure out who submitted the transaction and who received the transaction. This reason, Bitcoin is pseudo-anonymous protecting the privacy if you don’t know who the owner of the addresses is.
It’s the same when you are using anonymization services to hide your IP. The best-known example is the TOR network (onion-routing).

First of all, you should be able to manage your bitcoin wallet, which allows you to receive, store or send your bitcoins, only to be managed by anonymized providers. And so that one is not tempted to have to announce his bank details when buying bitcoins, there are now also providers on the Internet exchanging Bitcoins for cash, local clients you met personally and Bitcoin ATM. As long as you are limited to the purchase or sale of virtual goods, where no real existing address must be specified, anonymous use is therefore technically possible. With the slightest carelessness but can quickly be drawn conclusions on the own person and the anonymity is over, what makes it more difficult.

However, there are now also some Bitcoin alternatives that promise absolute anonymity through better encryption. This includes z-B. Monero, which has already been condemned by the governments and some said, they would ban it soon.

Basically, Bitcoin is less private as cash in terms of anonymity, but much better than digital payments via card, in which the customer is vulnerable to the providers delivered. Bitcoin is therefore a good solution to pay on the internet.

What do you think is best for privacy? Bitcoin, cash or card payments?

[1715081922]

1715081922

[1715081922]

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[Alan Carey]

BCH fork was the most deanonymizing thing that has happened to Bitcoin. The sheer amount of data from that will taint all prefork coins for a very long time.

[Samuel Fields]

BCH fork was the most deanonymizing thing that has happened to Bitcoin. The sheer amount of data from that will taint all prefork coins for a very long time.

Just because the transactions are on the chain and visible to everyone, doesn't mean many people will get caught. All you see is money moving from A to B to C. The only way you get caught is if you send your coins to an exchange, and they rat you out.

There's no real way to identify most addresses on the chain.

[Donald Johnston]

It's not. Even sending coins through tumblers has proven to be traceable. The best way to make your coins anonymous is to send your btc to shapeshift and convert them to xmr. Then send the xmr to xmr.to and get bitcoins out the other side.

[Ronald Lane]

It's not. Even sending coins through tumblers has proven to be traceable. The best way to make your coins anonymous is to send your btc to shapeshift and convert them to xmr. Then send the xmr to xmr.to and get bitcoins out the other side.

Shapeshift still has records of the input and outputs. You'd have to send to a few xmr addresses in different wallets and devices independent of shapeshift and then shapeshift back on to a wallet on a pseudononymous device with no sim card in it.

[Lester Atkins]

Bitcoin provides some anonymity but it’s up to bitcoiners where they want to be on the spectrum from fully anonymous to fully identified.

Bitcoin transactions provide some clues which could be combined with other information to de-anonymize a user if they are not careful.

[target]

There are tons of reason why one would want to be anonymous, you can do whatever you want, you can use XMR and PIVX.
The problem is what when you try to exchange your coins into fiat, that's when you will have to reveal your ID. Those who wants to buy paypal account perhaps are also trying to hide their ID and use someone else account.

[jorgelugra]

I think that btc is the most confidential coin ever and that's why we like it so much, i am sure that ether will have this benefit too with time. to my mind, it is better to buy btc now and later sell it