Bitcoin, the most traceable cryptocurrency that is no longer so anonymous

in #bitcoin7 years ago

The most important thing about Bitcoin is that it is a safe currency (thanks to the Blockchain) and that it is completely anonymous. But both statements are becoming more inaccurate: it is not as decentralized as it was believed (and therefore so safe), since a large part of its network is hosted by companies; nor is it as anonymous as it is said, because its traceability is considerably high.

And what does this mean? Bitcoin is so transparent that we can collect information from a wallet, allowing us to identify its owner. In fact, this is why many criminals who use Bitcoin to commit illegal activities must make many transfers from some purses to others, including other less traceable cryptocurrencies such as Monero, to obscure the trace and make it as less detectable as possible.

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I agree with your central point. However, I do think Bitcoin can be anonymous. As long as the company in charge of your wallet does not report identification info, there is no way to tell who owns it.

I can't speak for all wallets, but the one I run will not report any information to government agencies.

Interesting article, subscribed, I hope for reciprocity!