Privacy in Bitcoin

[ykropchik80]

There was a time where  Bitcoins transactions were thought to be super private

No there wasn't. Bitcoin has never been anonymous.

One can actually trace the address and if a person uses the same address a lot of times it is really not hard at all to connect it to an identity because of the KYC that now every wallet needs .

Every wallet? What are you talking about? If your wallet requires you to complete KYC, then you are either using the worst-of-the-worst (and probably a scam), or you are not using a wallet at all. The only thing that requires KYC is an account on a centralized exchange, which is categorically not a wallet, and if you are storing your coins there long-term then you at high risk of losing them all. Any good hardware wallet, software wallet, paper wallet, mobile app, etc., does not require KYC or even an email address to use.

Further, any good hardware or software wallet will automatically generate a new address for each receiving transaction and a new address for each change output to prevent address reuse. If your wallet doesn't do this, again, you should change wallet.

Totally agree with you
The main thing is to choose a good wallet, and there will be no problems with security and anonymity
Which wallet are you using?
I have been using CoinsBank for 3 years, and there has been no reason to regret my choice so far

[1714117573]

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[1714117573]

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[1714117573]

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[o_e_l_e_o]

The main thing is to choose a good wallet, and there will be no problems with security and anonymity

A good wallet will keep your coins secure, but there is a lot more to staying anonymous than simply picking a good wallet. While the correct wallet is necessary to stay anonymous, it is not the only factor. If you use a web wallet you will never be anonymous. If you run your own full node you could potentially be anonymous, but not without taking further steps and precautions.

Which wallet are you using?

A variety of wallets, holding different amounts of bitcoin, some of which I access daily, and some of which I haven't accessed in several years.

I have been using CoinsBank for 3 years, and there has been no reason to regret my choice so far

CoinsBank is a custodial web wallet, meaning they hold all your private keys, can watch all your addresses, and can see all your transaction. It is neither secure nor private.

[Jamalkm74]

I think BTC's  main policy is anonymous transaction, i like it and some how good for me for invest. I really don’t want to share who sent me that's my privacy           

[ololajulo]

The rule of Government on freedom of speech varies from country but we still have the universal but the financial freedom sometimes breaks the security of the country if not controlled. No absolute privacy in bitcoin and thats more reason we see relaxed law against the use in the top countries. Its more reason we see fewer projects going into privacy coin because it is not as attractive as it used to, we have enough of privacy coin and could see tougher restrictions.

[joniboini]

I think BTC's  main policy is anonymous transaction, i like it and some how good for me for invest. I really don’t want to share who sent me that's my privacy           

If you reread the past few posts before yours, you should realize that bitcoin is pseudonymous at best. You should use it, not invest only. While you're on it, read some book about money to understand why bitcoin is an alternative for sound money.

Its more reason we see fewer projects going into privacy coin because it is not as attractive as it used to, we have enough of privacy coin and could see tougher restrictions.

There will always be a new project claiming that they're the best because this and that, but we all know all of that happens because it can create some money for the team. Nothing's going to stop them as long as there's a bunch of people who're interested in that matter.

[coolcoinz]

The rule of Government on freedom of speech varies from country but we still have the universal but the financial freedom sometimes breaks the security of the country if not controlled. No absolute privacy in bitcoin and thats more reason we see relaxed law against the use in the top countries. Its more reason we see fewer projects going into privacy coin because it is not as attractive as it used to, we have enough of privacy coin and could see tougher restrictions.

I can't believe some people want more restrictions for cryptocurrencies. Are you crazy? Cryptocurrencies are already being pounded left and right by KYC and other stupid "money laondering rules". They used to say cryptocurrencies have nothing to do with money, but when it comes to money laundering, suddenly they fit the profile.

[mikeauerbach]

Never use the same Bitcoin address twice, find a reliable mixer. 

[ykropchik80]

The main thing is to choose a good wallet, and there will be no problems with security and anonymity

A good wallet will keep your coins secure, but there is a lot more to staying anonymous than simply picking a good wallet. While the correct wallet is necessary to stay anonymous, it is not the only factor. If you use a web wallet you will never be anonymous. If you run your own full node you could potentially be anonymous, but not without taking further steps and precautions.

Which wallet are you using?

A variety of wallets, holding different amounts of bitcoin, some of which I access daily, and some of which I haven't accessed in several years.

I have been using CoinsBank for 3 years, and there has been no reason to regret my choice so far

CoinsBank is a custodial web wallet, meaning they hold all your private keys, can watch all your addresses, and can see all your transaction. It is neither secure nor private.

CoinsBank sees my transactions and addresses, because I spend my transactions through them
And I do not see this as a problem
And anonymity is only possible when you use cryptocurrency
In the case of using fiats, then everyone will show their data

[o_e_l_e_o]

CoinsBank sees my transactions and addresses, because I spend my transactions through them
And I do not see this as a problem

Well, as long as you are aware that CoinsBank record everything they can about you, from your real name, address, date of birth, IP addresses, etc., through to your crypto addresses, transactions, and holdings, and share that information with governments, law enforcement, marketing companies, third party merchants, banks, data harvesting and processing companies, and anyone else they like, as per their exhaustive privacy policy here: https://coinsbank.com/privacy.

I will never understand people who don't have a problem with such a complete and total invasion of their privacy.

And anonymity is only possible when you use cryptocurrency
In the case of using fiats, then everyone will show their data

Anonymity is only possible if you use cryptocurrency in the correct way to give yourself anonymity. The way you use cryptocurrency - via a third party custodial web wallet who shares or sells your data to anyone they like - gives you less privacy than if you used fiat.

[Meowth05]

The reason for th e KYC is to prevent the chances that there is a money laundering scheme that is going to happen. Privacy has been the key feature of bitcoin so removing it defeats its purpose.

[lixer]

I think everything with an advantage in some way has its own disadvantage. If we are all given privacy and to make use of Blockchain and cryptocurrency and do the way we want, trust me, there are lots of bad people that are going to take this advantage to ruin everything.

We have not even had such freedom and some people are already out there and ruining the name of Bitcoin. If only that there could be a way to punish those that are using it for bad, I will be very happy. Just recently some hackers have hacked the computer of a hospital in L.A and demanding that payments be made in Bitcoin before they release the computer.

Please tell me, what are people going to think when they see that those hackers are demanding for Bitcoin as payment? They will start saying that bitcoin is a currency used by thieves. Sometimes, having full privacy is not really good idea.

[o_e_l_e_o]

Please tell me, what are people going to think when they see that those hackers are demanding for Bitcoin as payment? They will start saying that bitcoin is a currency used by thieves.

If bitcoin couldn't be used for illegal activities, then it would neither be a currency nor censorship resistant. The day you start freezing address or seizing control of bitcoin which you think have been used by criminals is the day that bitcoin dies, and becomes just another centralized scam coin.

There will always be criminals who abuse any piece of technology for illegal purposes. It doesn't mean we should ban or otherwise clamp down on said technology. Hackers use the internet to attack people, terrorists use mobile phones to communicate with each other, armed robbers use cars as get-away vehicles, etc. Should we ban or restrict all of these things? Obviously not.

Fiat is used for more criminal and illegal activity that bitcoin will ever be, by several orders of magnitude. Bitcoin is a lousy method to use for illegal purposes, precisely because the blockchain is public and anyone can trace the movement of stolen or otherwise tainted bitcoin. Criminals favor cash, which is truly untraceable.

[ABCbits]

Please tell me, what are people going to think when they see that those hackers are demanding for Bitcoin as payment? They will start saying that bitcoin is a currency used by thieves. Sometimes, having full privacy is not really good idea.

Bitcoin is just a "tool", it can be used for good or bad purpose depending on who use them. Many research state that only minority of Bitcoin or Bitcoin transaction is linked with criminal activity, example https://blog.chainalysis.com/reports/cryptocurrency-crime-2020-report

Besides, Bitcoin isn't really suitable for privacy-focused tasks due to it's pseudonymous nature. Cash is better option.

[FanatMonet]

Dudes, when you talk about some kind of anonymity, remember at least the story of the Silk Road. If you really need by from the power structures, they will find you, at least that you use. So just relax and enjoy life, and don’t do illegal things.

[CarnagexD]

If you are in the country that is already implemented the use of the bitcoin they are not against it instead they are limiting the transaction for receiving and sending of the funds also they need to require the kyc to avoid getting some trouble if there is a scamming happens on both parties also if you want you can also use the mixer to avoid getting detected on your every transaction if you want. Also, you can use the different wallets that do not have kyc because still they are supporting the use of the wallet even does not require your information also it is quite good too to manipulate your funds and not getting detected easily.

[ykropchik80]

CoinsBank sees my transactions and addresses, because I spend my transactions through them
And I do not see this as a problem

Well, as long as you are aware that CoinsBank record everything they can about you, from your real name, address, date of birth, IP addresses, etc., through to your crypto addresses, transactions, and holdings, and share that information with governments, law enforcement, marketing companies, third party merchants, banks, data harvesting and processing companies, and anyone else they like, as per their exhaustive privacy policy here: https://coinsbank.com/privacy.

I will never understand people who don't have a problem with such a complete and total invasion of their privacy.

And anonymity is only possible when you use cryptocurrency
In the case of using fiats, then everyone will show their data

Anonymity is only possible if you use cryptocurrency in the correct way to give yourself anonymity. The way you use cryptocurrency - via a third party custodial web wallet who shares or sells your data to anyone they like - gives you less privacy than if you used fiat.

If you think that in the modern world it is possible to remain anonymous 100%, then you are greatly mistaken. And working with cryptocurrency is no exception
At the moment, CoinsBank suits me and for 3 years they didn’t give me reason to doubt, transactions take place without delays, I am satisfied

[Ridwan Fauzi]

All people can track bitcoin transaction, even if you need to make a transaction anynomously I'll suggest to choose money fiat to do it, I mean using money paper not digital money like in your bank account. There is missconception against bitcoin anynomity. Because in the fact, there are a lot poeple who consider that transaction using bitcoin is can't be tracked by people and it was wrong unless you use bitcoin mixer (although there is many cases where bitcoin mixing service failed to do that).

[o_e_l_e_o]

If you think that in the modern world it is possible to remain anonymous 100%, then you are greatly mistaken.

I never said it was. If some three letter agency with a budget of billions of dollars is coming after you, then yes, it's going to be very hard to remain anonymous. That's hardly an argument for just throwing your hands up in despair and giving up on privacy, though. There is a big difference between being a focused target of a state-level agency and willingly handing over all your details to the complete strangers behind some two-bit web wallet and the third party ad companies who pay them.

At the moment, CoinsBank suits me and for 3 years they didn’t give me reason to doubt, transactions take place without delays, I am satisfied

Transactions taking place without delays is really the bare minimum metric to measure a wallet by. You are completely ignoring the massive invasion of your privacy as I outlined above, and the massive risk to your coins you are taking by holding them in a third party custodial wallet. Using a custodial wallet means you could lose access to your coins, or have them stolen, at any time for a myriad of reasons you can do nothing about.

[Abiky]

There was a time where  Bitcoins transactions were thought to be super private but unfortunately one should understand that with the upcoming years with the advancing technologies people have identified it to be pseudo transparent .
One can actually trace the address and if a person uses the same address a lot of times it is really not hard at all to connect it to an identity because of the KYC that now every wallet needs .
Yes some wallets are exceptions like the hardwares , paper wallets and other wallets which does not require KYC but that does not stand for most of the people out there.

Unfortunately, that's the harsh truth Bitcoin is facing today. It was once thought to be private, only to be discovered that anyone can link your identity with any given address' transactions on the public blockchain network. I believe that most people had the misconception of Bitcoin being private in its early days since there were little to none block explorers across the web. Despite Bitcoin's transparency, it's still possible to perform private transactions on the BTC blockchain by relying on diverse solutions within the crypto space. You can use a new BTC address for each transaction you're going to perform on the network, use a wallet with a built-in mixer (like Wasabi Wallet or Samourai), or even use a Bitcoin mixer service online. Additionally, is possible to send BTC to many addresses at once on a single transaction to save both on fees (Batch Transactions) and even increase your privacy.

If you're still not comfortable enough in using Bitcoin privately with the aforementioned solutions, there's always the choice of using a privacy-oriented coin for your utmost sensitive transactions. Both Monero and Grin fit the bill nicely as they're private by default. You'd simply send "x" amount of coins on the Blockchain without having to recur to a separate solution. The process is simple enough for anyone to understand. Under the hood, privacy coins like Monero and Grin obfuscate your transactions making it nearly impossible for governments or other third-parties to track & trace your activity on-chain. It's said that Bitcoin has some sort of privacy within the Lightning Network, since transactions are performed in an off-chain manner.

Nonetheless, the decentralized nature of crypto allows you to circumvent KYC whenever it's necessary. If you want convenience over censorship-resistance, then verifying your ID would be the best path to take. But if you care about privacy, then I'd suggest you either trade your Bitcoin personally to Fiat or use one of the aforementioned solutions/methods to remain as anonymous as possible. Most people don't know that Bitcoin is not private by default, leading them to believe that their identity is safe from "prying eyes". With proper education, people will be encouraged to preserve their privacy on the Blockchain whenever it is necessary. Just my thoughts

[Twentyonepaylots]

All people can track bitcoin transaction, even if you need to make a transaction anynomously I'll suggest to choose money fiat to do it, I mean using money paper not digital money like in your bank account. There is missconception against bitcoin anynomity. Because in the fact, there are a lot poeple who consider that transaction using bitcoin is can't be tracked by people and it was wrong unless you use bitcoin mixer (although there is many cases where bitcoin mixing service failed to do that).

What you are trying to say is that, bitcoin transaction can be tracked obviously because blockchain adds it up to the chain that can be viewed publicly however the sender and receiver's data is completely anonymous even the place of transaction that has been made is completely unknown. That is why bitcoin is also used for illegal activities like money laundering coz some people found bitcoin doing best at this  thing.