Most of these merchants or retailers have very good CCTV systems that can be used to link the identity of the user with the Bitcoin wallet that are used.
Is this good for Bitcoin? ^hmmmmm^
The point is that you should use a different address each time you settle one or more purchases. Say, if you transfer an x amount of coins from a mixer, exchange, etc, to that throw away address, and after a few purchases you burned through your balance, you simply delete that address. Isn't that difficult, right? No one with a decent functioning brain will use an address in such circumstances all the time.
Agreed, but my point is that Bitcoin users will be identified from video footage and then the raids and harassment will follow. They only need to link you to the "use" of Bitcoin once, if they want to pursue you. They build a database of Bitcoin users and then suddenly ban Bitcoin use and clamp down on people on this database. < facial recognition >
I am probably paranoid and this might never happen, but I have seen and heard stranger things than this. < Go through US international Airports with a Bitcoin T-shirt and see what will happen to you. >
It is a possibility, however, if you are purchasing online with your laptop using bitcoin then there are probably a lot the government can know about you as well through the IP address, type of browser used, system info etc. Even with bitcoin if you don't use TOR and VPN together, as well as anti tracking measures it's hard to get perfect anonymity.
And no, i don't think that paranoia for tracking is a bad thing at all, and i believe that it should be encouraged. Otherwise, governments will gain more ground without any protesters of what they do.
I still think that Burger king in russia accepting bitcoin is great news, after all, bitcoin is not illegal there, and the Russian government is pledging to legalize it by tracking all transactions anyways on the bitcoin network(not sure howthey're going to do that though) by 2020, so if that's the case, there is already going to be government tracking your spending