Is Bitcoin (BTC) really the anonymous cryptocurrency that many people think? No ! Let’s take a look at this in detail in this content.
“Bitcoin (BTC) is an anonymous currency that allows you to pay in the dark.“. This is one of the favorite phrases of people who criticize BTC for anonymity. Yes, even Bitcoin (BTC), the king of cryptocurrencies, is not without critics. He is accused of promoting the activities of terrorists and money launderers. … For a good reason, it would be anonymous. But is it? Not really, and that’s what we’ll show you.
Why is Bitcoin (BTC) considered anonymous?
Although many people think of BTC as a currencyanonymity, primarily because it can be blown up by anyone at any time. Without specifying their home address (or company headquarters), IP address, or other personal information, anyone can mine with BTC. To summarize, it is as if all the miners were working behind a dark room covered with a black veil and very opaque.
In addition, the BTC wallet can be downloaded without providing (again) personal information about the user. It is even possible to safely transfer tokens to other wallets without revealing their identity. Result: The mined bitcoins (BTC) are truly anonymous.
So, in theory, Bitcoin (BTC) isanonymous. But this is only in theory! In fact, in reality, everything is different, due to the presence of the police of the financial market, or, in more classical terms, ” financial “. They set standards related to digital assets and Bitcoin (BTC) is no exception.
No, Bitcoin (BTC) is not anonymous
In truth,far from anonymous. Indeed, if this were the case, it would be impossible to trace the transactions. Explanations.
WITHBTC, all transactions are listed. Obviously, the saved data contains neither the name nor the name of the minor. What appears on the blockchain is rather a series of numbers that correspond to the public address of his wallet. Thus, if the miner uses the same address every time for these transactions, they will be listed and can be traced back to the owner of the address.
But how can a string of numbers lead to an owner? It’s simple. It is enough to know already that tokens do not magically appear in the wallet. They definitely come in because they were sent by another miner through an exchange (cryptocurrency exchange). However, all stock exchanges are required to identify their customers in accordance with Know Your Customer (KYC) principles.
If you have a wallet, your information is hidden from your stock exchange. If the authority requests it, the stock exchange can provide it with your information or send it your IP address, which roughly matches your position. So, no, Bitcoin (BTC) is not as anonymous as you think, and there are plenty of examples to demonstrate this.
Slik Road, the most wonderful example
We are living in 2008, the golden age of bitcoin (BTC). He just appeared, and few people hear about him. For those few who know of its existence, the description given is always the same: “It is a currency that does not require any trusted third party and is not regulated by the state or other authorities. It is efficient and allows for cross-border exchange. ” Since the cryptocurrency is not controlled, it starts to seduce.
A few years later, an e-commerce site was launched. However, this site is not like the others. First, it is available on… Then he only offers not very Catholic products for sale. His name is Silk Road, invention … DPR decides that transactions will only be done with Bitcoin (BTC).
Unfortunately for DPR, a few years later he will be trapped by the FBI in 2013, which was able to trace it back to him through BTC transactions. FBI agents infiltrate buyers of products on the platform. At the same time, they discover an unmasked IP address that leads them directly to servers located in Iceland. Thanks to this address, they track transactions on the BTC blockchain and trace them back to DPR.
The end of the story is as follows: The FBI stops DPR and gets a stock of over 26,000 BTC, which will then be auctioned off. The moral is this: never believe that Bitcoin (BTC) transactions are untraceable. However, it is still possible to remain anonymous with the king of cryptocurrencies.
How to keep anonymity with Bitcoin (BTC)?
There are many ways to anonymize BTC. One of the most effective is to use the services of blenders. The goal is to mix BTC from multiple users. Thus, it is difficult, if not impossible, to determine the exact origin of the tokens.
While mixing is a proven method, it has a drawback. It is important for the user to trust a third party who will entrust him with the funds. Another problem is that your transactions can be mixed with transactions of people who are engaged in less legal activities. After all, you may find yourself caught up in stories whose heads and tails you don’t know.
In short, is Bitcoin (BTC) anonymous? No and no! The first “no” is to say that in fact only his concept allows you to cover the sheet of anonymity. The second “no” option is more obvious because it means that the transactions are not actually conducted in secret. They can be tracked using the Bitcoin (BTC) blockchain.