Only amateurs believe that Bitcoin is anonymous – the opposite is the case.
Bitcoin is often mentioned by skeptics and cryptoamateurs as an anonymous means of payment for lack of knowledge, especially in connection with the illegal purchase of goods such as drugs or weapons. Some even go so far as to say that it is for this very reason that Bitcoin is the number one means of payment for terrorists and criminals – but the naked truth is that the Bitcoin network is currently the most transparent on the market!
Payment flows in the Bitcoin network are completely transparent
Each bit coin ever sent and received can be traced back to the point at which it was produced, i.e. excavated, or “mined”. Bitcoin addresses are publicly visible – without exception for everyone! It is intended and also the sense of a decentralized currency to deposit the sending and receiving addresses not by owner data, but by hash (multi-digit number and letter code) – if someone would know how and to whom one can assign these addresses, then one would also be able to view the complete transaction history.
The transactions are transparent, the actors are not direct.
The connection between Bitcoin address and Bitcoin Holder is usually only established when something is ordered online and delivered to the home address. In addition, the wire is created when other information such as e-mail or other contact details are provided, verification is required for a payment, or registration is required. In Bitcoin exchanges, for example, you go through a KYC process (Know-Your-Customer-Verification) in which you also have to disclose the relevant data.
Tracking the IP addresses Identify users
It is common practice that the IP address, which is directly connected to the Bitcoin transaction, is spied out by various services and providers – even with Bitcoin directly! Since Bitcoin is a peer-to-peer network, it is not difficult to record the corresponding IP addresses.
Some Bitcoin users use the TOR browser or programs like CyberGhost to remain anonymous and disguise their IP address. There is nothing reprehensible about this: Not everyone likes the feeling of being constantly under observation. One has to accept that and is each his own free decision.