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Is Bitcoin Anonymous?

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Satoshi Nakomoto: The most famous anonymous person in the world Satoshi Nakomoto owns the biggest number of Bitcoins at this time and yet nobody knows who he is.Up to this day, no one has been able to prove his true identity

Is Bitcoin Anonymous?

Bitcoin is anonymous as long at the real identity of the Bitcoin wallet owner remains unknown.

In other words, if you do not know the real identity of the Bitcoin wallet’s owner, then the wallet remains anonymous.

However, as soon as the wallet owner is identified, then owner loses all anonymity.

Is Bitcoin Anonymous?

Bitcoin is not only a currency but a payment gateway also known as the Blockchain.

The Blockchain is like a secure spreadsheet where all transactions are recorded.

Each time a transaction is recorded on the blockchain, a new algorithm is created preventing anyone from modifying it.

While, this is great because Bitcoin’s Blockchain Technology prevents anyone from modifying data, it also  potentially create a major privacy concerns because everyone can view the transactions of your Bitcoin wallet without your consent.

Bitcoin’s lack of anonymity is one of its biggest flaws compared it to traditional physical cash bills

Satoshi Nakomoto: The most famous anonymous person in the world

Satoshi Nakomoto owns the biggest number of Bitcoins at this time and yet nobody knows who he is.

Up to this day, no one has been able to reveal his true identity.

He successfully separated his identity with that of Bitcoin.

You can easily view his Bitcoin wallet and all the Bitcoin he owns.

Is Bitcoin not Anonymous?

Bitcoin is anonymous as long the owners do not provide any personal information which can will link them to the wallet address.

With regulations being implemented, there is increasing pressure for centralized cryptocurrency exchanges tdisclose customer information to authorities KYC.

This means, that an increasing number of Bitcoin investors are being disclosed to authorities.

With the internet, any large Bitcoin holder becomes a target for hackers as their wallet addresses get shared to forums.

How anonymous are Bitcoin investors?

First of all, what makes Bitcoin great is both a currency and a bank.

The Bitcoin Blockchain is like a VERY PUBLIC (!) spreadsheet where all transactions are recorded.

Once the transactions are recorded, they cannot be deleted or changed.

If you are making small transactions, you will not stand out.

But if you are making transactions which can potentially affect the market, then notifications will be blasted on all social media channels to people who pay attention to these things.

Bitcoin is anonymous as long another person does not have your wallet address or bitcoin hash. This makes Bitcoin the most transparent payment gateway. 

You can easily view the wallet (account) of the previous Bitcoin owner (or piece of bitcoin).

 

How transparent is Bitcoin?

If you give a person your Bitcoin wallet address (a.k.a public key), they will easily be able to view how many Bitcoins(or pieces of Bitcoin) it contains, which Bitcoin address the Bitcoins were from and to whom they were sent to.

Let’s use an example:

Imagine giving an ecommerce store your bank account number for a refund.

They will easily be able to view all the past transactions, use those transactions IDs to view the accounts of family members to whom you have sent money.

Worse yet, they can view the accounts of the people who have sent money to your family members.

How do you remain anonymous as a Bitcoin investor?

The best way to remain anonymous, is to buy Bitcoin in person (a.k.a Peer-to-Peer).

In other words, treat Bitcoin like you would for cash.

The biggest mistakes investors make is to treat exchanges like banks to store their Bitcoin.

There a several good free wallets which do not require KYC or identification like EXODUS.

Bitcoin is anonymous as long the owners do not provide any personal information which can will link them to the wallet address.

With regulations being implemented, there is increasing pressure for centralized cryptocurrency exchanges tdisclose customer information to authorities KYC.

This means, that an increasing number of Bitcoin investors are being disclosed to authorities.

With the internet, any large Bitcoin holder becomes a target for hackers as their wallet addresses get shared to forums.

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