Have you ever considered your lack of privacy when using
BTC ? (Or any other cryptocurrency?)
Do I really need to explain your lack of privacy? Think yourself.
Ok if you havent found anything then:blockchain is a log of all btc transactions ever.
Its not hard to identify anyone who doesnt take al the needed steps to make their address remain anonymous.Think AGAIN
The more is known about you (like what you bought with that address) the more singled out you can be from everyone which means less anon.
With physical money it isnt that easy to know everything every person ever bought.
Im sorry if I misunderstood something but bitcoin wiki has:
A block chain is a transaction database shared by all nodes participating in a system based on the Bitcoin protocol. A full copy of a currency's block chain contains every transaction ever executed in the currency.
Ok. What are all the things I've bought with bitcoin?
The reality of privacy is somewhere in between cash and credit cards, but I think its much closer to cash. Also, please consider that today's cycle: exchange->purchase->exchange makes identification much easier since people are identified at the exchange. But as Bitcoin becomes more popular and is sent person-2-person like cash it will become more like cash WRT privacy because it will be very hard to trace a chain of 20 transfers (you have to ask all 20 individuals who they sent it to) to find the 21st.
But of course if some address in the chain of transfers is also used to receive money from an exchange, then a short-cut exists. So the difficulty to trace really is the shortest path from the transaction in question to an exchange.