But bitcoin is indeed anonymous, I do not need to verify my ID in order to have a btc wallet, neither do I go through an identity check when trading with btc. You cannot deny that this will be excellent for fraudulent transactions howbeit, we could curb this my mandating an ID verification for all btc users.
The word you are looking for is pseudonymous. Everybody can see your transactions; they just can't link your BTC address to your real life identity.
If you do slip up and one of your transactions does get linked, then your transaction history is public for the world to see.
