is Bitcoin really anonymous?

[Out of mind]

We know that Bitcoin is not completely anonymous, but Satoshi designed the Bitcoin network in such a way that everyone can see the transactions. Every transaction is stored in the blockchain, which is why anyone can see them if they make a transaction, only the address is used, but it is not possible to see it using the name, it is confidential. Bitcoin is pseudonymous, only your identity will be hidden but your wallet address will be visible from where anyone can see your transaction transactions but cannot find out your identity. But in the case of exchanges, it is different, when you buy Bitcoin from an exchange or make a transaction from there, of course the exchange authorities can find out all your identity due to the KYC system. We know that Bitcoin is transparent but anonymous, but if we want to control privacy, we must avoid exchanges where KYC is required, so using hardware wallets and using the Lightning Network is the safest.

[Awaklara]

If transactions are public on the blockchain, how private is Bitcoin really is ?

If you make transactions through a centralized exchange that requires KYC, it makes Bitcoin not anonymous. Transactions can be tracked, but your data as the owner of a certain amount of Bitcoin does not become public. Perhaps only the government has access to know all of that. Ordinary people can usually only track through the network; they don't actually know who you are.
Some people don't like centralized exchanges; they choose to use exchanges without KYC to convert their assets, or even use mixers to avoid unwanted attention.

[SquirrelJulietGarden]

If you make transactions through a centralized exchange that requires KYC, it makes Bitcoin not anonymous. Transactions can be tracked, but your data as the owner of a certain amount of Bitcoin does not become public. Perhaps only the government has access to know all of that. Ordinary people can usually only track through the network; they don't actually know who you are.
Some people don't like centralized exchanges; they choose to use exchanges without KYC to convert their assets, or even use mixers to avoid unwanted attention.

Bitcoin is Bitcoin, a public blokchain, and bitcoins are coins in your wallets with UTXOs waiting to be used by you. How you use your bitcoin UTXOs for transactions, changed addresses, Tor will help you have better privacy and anonymity or have worse ones.

bitcoins basically and technically are fungible so let's say if you buy bitcoins from someone by any way, on CEX, DEX, P2P, you never know that your coins are anonymous or not.

Some recommendations for having better privacy and anonymity.
https://en.bitcoin.it/wiki/Privacy
https://bitcoiner.guide/privacy/
https://bitcoin.org/en/protect-your-privacy

[joniboini]

please correct me if am wrong but does this mixing service not have some kind of data base that can be accessed  if they got seized by the government?

As mentioned above, we don't know for sure how long data is stored on their database. It's safe to assume they'll keep it for a while for CS purposes, but it's impossible to verify if the data is gone for good since we have no physical access to their servers. Some reports show how governments recovered some data from their storage, so it isn't impossible that some of them are stored way longer than expected. As always, be prepared for the worst.

[ndutndut]

Some people will say Bitcoin is anonymous, others will say it is traceable.

This part kidda confuses me in a way..
If transactions are public on the blockchain, how private is Bitcoin really is ?

The definition of privacy here depends on you, not the Bitcoin system itself. As we know, all Bitcoins are public on the blockchain designed for transparency and security, not privacy.

So, in other words, Bitcoin privacy depends on how you use it. If you buy Bitcoin through an exchange that requires KYC there's no privacy, especially if you send it to the same wallet repeatedly, as your transactions can be tracked by governments and even ordinary people. But if you buy Bitcoin P2P, with a new address each time and no KYC, then you have privacy. By privacy, I mean Bitcoin privacy is superior to many traditional systems. So, in short Bitcoin's privacy depends on how you use it.

[Patikno]

Some people will say Bitcoin is anonymous, others will say it is traceable.

This part kidda confuses me in a way..
If transactions are public on the blockchain, how private is Bitcoin really is ?

Bitcoin is traceable, but can you determine someone identity from a transaction? No, you cannot find out someone identity from an address (as long as it is not exposed). Let me clarify further.

I believe that Bitcoin anonymity isn't revealed as long as the owner does not publish it. Usually, the one who publishes it is directly (usually by announcing ownership of the address themselves), or indirectly (usually by linking your address to something that could reveal your identity, such as sending it to a site where you have completed KYC). Essentially, your identity will remain anonymous as long as it is never revealed, intentionally or unintentionally.

By the way, Satoshi once stated that, even nodes can't tell which Bitcoin addresses belong to which IP addresses, and there satoshi suggested to use bitcoin address only once for better privacy.

Reference : Re: Repost: How anonymous are bitcoins?

[Zaguru12]

Bitcoin is Bitcoin, a public blokchain, and bitcoins are coins in your wallets with UTXOs waiting to be used by you. How you use your bitcoin UTXOs for transactions, changed addresses, Tor will help you have better privacy and anonymity or have worse ones.

I think What Awaklara is actually on about and which we I agree with is simple, you lose Anonymity and also privacy when you use centralized exchanges that requires KYC to buy or sell your bitcoin because the address from which the coin came into the wallet from or left the wallet into is now attached to your exchange wallet address which already has your identity KYCed to it.

bitcoins basically and technically are fungible so let's say if you buy bitcoins from someone by any way, on CEX, DEX, P2P, you never know that your coins are anonymous or not.

If you buy from decentralized exchanges or any where you have not ever submitted KYC with and you use your Tor or any means to avoid IP tracking, with such address never interacting with any of the KYCed ones, then I can say that you’re anonymous but not with privacy.

But should you use centralized exchanges where you actually have submitted KYC before and you buy bitcoin from there then you’re neither nor anonymous because the exchange actually has this information

[Asiska02]

Some people will say Bitcoin is anonymous, others will say it is traceable.

This part kidda confuses me in a way..
If transactions are public on the blockchain, how private is Bitcoin really is ?

Bitcoin is being said generally to be anonymous but the fact remains that Bitcoin is pseudonymous in nature and not usually anonymous. Bitcoin transactions are publicly known on the blockchain but your address does not automatically shows your name. Since it is publicly shown on the blockchain, the amount sent, address it was sent to will all be visible to the public. Now what makes it to be anonymous is that the face behind the address is not known unless when these addresses used are attached to an exchange which is already KYC’d. True anonymity will mean, no traceable link, no identity and no transaction visible to the public, this is why Bitcoin is more to be called to be pseudonymous in nature and not anonymous in its entirety.

Now privacy to me will mean how you handle this your financial informations. Who gets to see the amount you have in your wallets and also the face behind the wallet. Privacy can be further increased by how you handle informations about your wallet. Don’t engage in publishing your wallet to the public, don’t allow your transactions to be a linked to an exchange, that’s one of the quickest ways to track you. IP address can be tracked, using Tor can hide your true IP which is most effective than even using VPN. Bitcoin is transparent in nature even though it is decentralized. Your interaction in the network now distinguish whether you’ll remain anonymous and private to the public.

[nakamura12]

Bitcoin transactions can be traced which is true but for knowing who owns it is impossible if the address isn't from an exchange so there's no way of knowing who owns it. For exchange, there's a possibility that someone will know who owns it since many exchange requires you to pass KYC and when it's about KYC then you will have to provide personal information and an government ID. It all depends on how you got your Bitcoin because if it's from a platform without KYC then it's good but if it's centralized then there's a chance they know about your identity through the KYC.

[PrivacyG]

Bitcoin transactions can be traced which is true but for knowing who owns it is impossible if the address isn't from an exchange so there's no way of knowing who owns it. For exchange, there's a possibility that someone will know who owns it since many exchange requires you to pass KYC and when it's about KYC then you will have to provide personal information and an government ID. It all depends on how you got your Bitcoin because if it's from a platform without KYC then it's good but if it's centralized then there's a chance they know about your identity through the KYC.

As soon as the Bitcoin ends up spent some where other than to another Peer however, it becomes very easy to find out who the person is.  Finding out is not even close to impossible, there are actually so many mistakes you can very easily make that it is safe to assume Bitcoin is in over 95 percent of the cases NOT 'Anonymous'.  If you want Anonymity, see Monero.  Bitcoin is clearly Pseudonymous and it does require a TON of effort and zero mistakes to make it as close to Anonymous as possible.

My Bitcoin Talk Addresses may be what you consider 'Anonymous'.  I created my Wallet on a computer that has never seen the Internet.  I do not Broadcast my own Transactions by my self and the computer is entirely Offline and it will continue to stay that way.  They are however not Anonymous, people know these belong to the Bitcoin Talk user 'PrivacyG'.  I may try to use methods to log in with out Java Script and never using the Clearnet but there definitely are many mistakes I made before and I am aware of this.  If I had a Monero Address then things would be entirely vague.  Bitcoin is public.  You can make links at any time if you have information.  No information, no links to create.

[yixichloro2xx]

You are not alone, many people get confused about that a lot.  I think Bitcoin is pseudonymous( i.e all transactions are linked to a wallet address, not your real name. Your activities will be seen in the  public but your name will be private) not fully anonymous. I also heard that if your wallet address is linked to your identity (for example through an exchange account), then it can be traced back to you. How that work,  let's say John buys Bitcoin from Binance (you have already done your KYC) and sends it to his personal wallet. Since Binance knows where you sent it to, they will record it as "John sent Bitcoin to this wallet address.”

[myfik11]

It can definitely be traced since the blockchain data is public. But it depends on how you use it and where you spend it. If you use it correctly you can still stay anonymous. But if privacy is your concern, you might also consider some privacy focused coins like xmr. Or maybe mixing it but make sure to know what you are doing and the risks.

[Porfirii]

We usually focus on this topic to discuss about anonymity, to finish saying that there are ways and also better alternatives if that is the objective. But we almost never talk about the benefits of pseudonymity itself.

In an age when more and more people are using credit cards for almost every purchase (no matter if it's a car or a coffee) and when thanks to loyalty cards we give more and more data to more and more third parties, any measure that hinders the connection of such data should be considered positive, and not only the one that completely prevents such a connection.

[Curious T]

So, in other words, Bitcoin privacy depends on how you use it. If you buy Bitcoin through an exchange that requires KYC there's no privacy, especially if you send it to the same wallet repeatedly, as your transactions can be tracked by governments and even ordinary people. But if you buy Bitcoin P2P, with a new address each time and no KYC, then you have privacy. By privacy, I mean Bitcoin privacy is superior to many traditional systems. So, in short Bitcoin's privacy depends on how you use it.

At no point do you get privacy in terms of Bitcoin transactions. Even if you use a mixing service, the transaction is still public on the blockchain. The transactions of Bitcoin are public. They have always been public and will always be public. Bitcoin transactions are pseudonymous but not private. pseudonymous in the sense that anybody can see the transaction, but they can't know who made the transaction. Something that is public, cannot be private.

[ultrloa]

So, in other words, Bitcoin privacy depends on how you use it. If you buy Bitcoin through an exchange that requires KYC there's no privacy, especially if you send it to the same wallet repeatedly, as your transactions can be tracked by governments and even ordinary people. But if you buy Bitcoin P2P, with a new address each time and no KYC, then you have privacy. By privacy, I mean Bitcoin privacy is superior to many traditional systems. So, in short Bitcoin's privacy depends on how you use it.

At no point do you get privacy in terms of Bitcoin transactions. Even if you use a mixing service, the transaction is still public on the blockchain. The transactions of Bitcoin are public. They have always been public and will always be public. Bitcoin transactions are pseudonymous but not private. pseudonymous in the sense that anybody can see the transaction, but they can't know who made the transaction. Something that is public, cannot be private.

All transactions happening is publicly recorded that's why everything is not truly private. Anyone can see those transactions they made especially and how much balance left on their wallets.

What actually make it hard to link with certain individual is those addresses we used is not been tied up with the real name of the user.

And with that those people tracking each addresses with balance available can't easily know the real identity of the owner of that address they are looking at.  With those things Bitcoin could provide transparency but not those full privacy feature which people looking at that's why there are some people choose to use mixer to add some protection.

[Daniel91]

So, in other words, Bitcoin privacy depends on how you use it. If you buy Bitcoin through an exchange that requires KYC there's no privacy, especially if you send it to the same wallet repeatedly, as your transactions can be tracked by governments and even ordinary people. But if you buy Bitcoin P2P, with a new address each time and no KYC, then you have privacy. By privacy, I mean Bitcoin privacy is superior to many traditional systems. So, in short Bitcoin's privacy depends on how you use it.

At no point do you get privacy in terms of Bitcoin transactions. Even if you use a mixing service, the transaction is still public on the blockchain. The transactions of Bitcoin are public. They have always been public and will always be public. Bitcoin transactions are pseudonymous but not private. pseudonymous in the sense that anybody can see the transaction, but they can't know who made the transaction. Something that is public, cannot be private.

All transactions happening is publicly recorded that's why everything is not truly private. Anyone can see those transactions they made especially and how much balance left on their wallets.

What actually make it hard to link with certain individual is those addresses we used is not been tied up with the real name of the user.

And with that those people tracking each addresses with balance available can't easily know the real identity of the owner of that address they are looking at.  With those things Bitcoin could provide transparency but not those full privacy feature which people looking at that's why there are some people choose to use mixer to add some protection.

Yes, all btc transactions can be seen and the flow of ''btc funds'' can be followed from start to finish, that's true, but one thing needs to be clarified. The identity of the end user can only be found out by tax and other authorities if the user sold btc funds for fiat and provided their personal information, ID, to the crypto exchange.
If btc was sold to a private person, or at an ATM, for example, or in some other way without sharing personal information, then it can't be said that the anonymity of the end user is at risk.
Experienced crypto users already know this, of course, but some users probably want their transaction data to be known to their country's tax authorities for tax exemptions, for example.

[Razmirraz]

Some people will say Bitcoin is anonymous, others will say it is traceable.

This part kidda confuses me in a way..
If transactions are public on the blockchain, how private is Bitcoin really is ?

To my knowledge, Bitcoin is not completely anonymous, but it is not completely traceable. Bitcoin has a unique privacy feature, every transaction is public and visible to anyone on the blockchain, but that doesn't mean your identity as the owner of the Bitcoin address is publicly available. Bitcoin addresses are pseudonymous or not directly linked to your identity, but if you link your Bitcoin address to a real identity through (KYC) procedures on an exchange, then every transaction can be tracked.
There are several ways to increase privacy in Bitcoin, such as using a different Bitcoin address for each transaction, using services like mixers or tumblers to randomize transactions, and using technologies like CoinJoin or the Lightning Network to disguise the origin of coins.

[Webutxo]

Yes, all btc transactions can be seen and the flow of ''btc funds'' can be followed from start to finish, that's true, but one thing needs to be clarified. The identity of the end user can only be found out by tax and other authorities if the user sold btc funds for fiat and provided their personal information, ID, to the crypto exchange.
If btc was sold to a private person, or at an ATM, for example, or in some other way without sharing personal information, then it can't be said that the anonymity of the end user is at risk.
Experienced crypto users already know this, of course, but some users probably want their transaction data to be known to their country's tax authorities for tax exemptions, for example.

As far as Bitcoin transaction is concerned, anything that has happened on chain can't be identify to anybody until it's link to one identity and one of the common way is through the centralized exchanges. This is why some people are discourage to do kcy or use centralized exchanges, before you can use any of their services you have to be verified, this is against some People's believe as far as privacy is concerned.

Left to the user, if you don't mind doing Kyc you can do transaction with Bitcoin and get it link to you since you will have to file for tax and some other things but as for other people that doesn't consent to Kyc, you can use Bitcoin without revealing your identity, which ever you chose the network is available for everyone.

[Itz-prisigold]

Personally I think The confusion happens because people think private and anonymous are the same thing.

From what I understand about Bitcoin, I will say that it is pseudonymous instead of anonymous, because your real name is not directly attached to your wallet address, yes. But every single transaction is permanently recorded on the blockchain for anyone to see, so that alone can tell me that it's not some invisible system where nobody can trace anything.

True, your real name is not on the system,  but your transaction history is completely public. If that wallet address is attached to you, and it can be through a KYC exchange, then all of the information tied to that wallet is completely accessible. That does not sound anonymous to me.

I also don't think Bitcoin is “fully exposed”. You are not required to show your identification to make a transaction, which means you have some privacy, you are the one in control of your keys, and you can also manage how much information you actually wants to reveal. But privacy just depends on how you use it.

For me personally,  I will just say that Bitcoin is transparent by design and not anonymous by default and It offers you financial sovereignty, sure, but it does not provide you invisibility. And seriously that transparency is part what actually make the network trustworthy.  As every user is able to confirm the transactions without needing to trust a central authority. So Bitcoin is not really anonymous like a cash in your hand.