If Bitcoin were are impenetrable as Monero I'm pretty certain it would not have been allowed to flourish in the way it has by governments. We'll see a point where all proper privacy coins aren't allowed anywhere near regulated exchanges. Coinbase's latest UK banking partner made getting rid of Zcash a condition of them coming on board and that's not even that convincingly private.
I wonder whether Satoshi consciously made complete privacy something you have to work at or he couldn't be arsed to add it or decided it was someone else's problem in future. P2P cash without the total anonymity that cash has seems quite an oversight.
Topic: Why is bitcoin not anonymous? (Read 451 times)
If the creator of Bitcoin Satashi Nakamato created it as an anonymous currency, why does everyone say that it is not anonymous?
Bitcoin is not anonymous, but decentralized? YES, Bitcoin was never built to have such feature, you can only see anonymous features in privacy coins like Monero, Sero project, Zcash, Komodo, Verge etc If you really want to go anonymous using Bitcoin then I suggest you do some research on Bitcoin Mixer
Satoshi was simply a genius. By creating a pseudonymous coin, he/they created a coin in a friendly way in regards with the authorities - a coin that would not instantly become a state's enemy.
It did work out well, but I don't think it's a primary consideration. According to the white paper:
Quote from: https://bitcoin.org/bitcoin.pdf
We need a way for the payee to know that the previous owners did not sign any earlier transactions. For our purposes, the earliest transaction is the one that counts, so we don't care about later attempts to double-spend. The only way to confirm the absence of a transaction is to be aware of all transactions. In the mint based model, the mint was aware of all transactions and decided which arrived first. To accomplish this without a trusted party, transactions must be publicly announced, and we need a system for participants to agree on a single history of theorder in which they were received. The payee needs proof that at the time of each transaction, the majority of nodes agreed it was the first received.
If we want to be completely specific, this is the reason why Bitcoin isn't anonymous.
Bitcoin is not anonymous so not to allow hackers hack your coins and get away with them through exchanges by dumping those coins on innocent people's money.
And how exactly are hackers not hacking peoples' coins and then dumping them? By simply buying it low and sell it with full pressure (I'm talking about whales who are considered hackers in my thinking because they hack the markets by moving it towards the way they want to, and earn a lot of money doing all that shit). Another way the real hackers go through, is by looting exchanges and going for OTC deals where some big whales get trapped by these thieves.
Privacy is not one of the main features of Bitcoin, but it can be an extra feature thanks to in a variety of ways (f.e; CoinJoin, traditional mixers etc). As an investor, all I want is that no one can interfere with my money. I can't even use PayPal because it was banned by the government. Don't give a fuck, use BTC.
Bitcoin is not anonymous so not to allow hackers hack your coins and get away with them through exchanges by dumping those coins on innocent people's money.
And how exactly are hackers not hacking peoples' coins and then dumping them?
Bitcoin is not anonymous so not to allow hackers hack your coins and get away with them through exchanges by dumping those coins on innocent people's money.
I believe your Bitcoins are anonymous until:
- You buy BTC through credit card
- You yourself allow to break your identity by revealing your address you used and giving the transaction ID to prove that it's yours
- You sign a message
- You use an exchange to trade, be it with or without KYC
- You send your BTC to any local person you're dealing with
So, unless you have your money remaining in BTC for a long time and you decide not to move it, or just mix them and move it to a number of addresses and keep them aside, you are safe and anonymous.
I believe your Bitcoins are anonymous until:
- You buy BTC through credit card
- You yourself allow to break your identity by revealing your address you used and giving the transaction ID to prove that it's yours
- You sign a message
- You use an exchange to trade, be it with or without KYC
- You send your BTC to any local person you're dealing with
So, unless you have your money remaining in BTC for a long time and you decide not to move it, or just mix them and move it to a number of addresses and keep them aside, you are safe and anonymous.
Basically, the anonymousity of Bitcoin wasn't intended for Satoshi from creation because, there wasn't a provision made for a sole exchange for Bitcoin only which won't request traders information. Yes, there are exchange known as decentralized exchange but the government still clap on them for traders information to curtain the AML. Public keys can can be trace down to a particular trader when he or she convert coins to fiats.
The only are you can get anonymity is: using bitcoin to buy monero and buy back again before getiing your coins into mixers.
The only are you can get anonymity is: using bitcoin to buy monero and buy back again before getiing your coins into mixers.
I always have two things in mind when someone ask this question.
1. Blockchain - How can Bitcoin be anonymous if literally all transactions made through blockchain can be shown to everyone along with dates, amount, and transaction fee? How can Bitcoin be Anonymous if Blockchain is also known as a "digital ledger" for Bitcoin's transaction? A lot of the authorities are already connecting addresses and linking them to illicit activities with the use of Blockchain so the blockchain alone eliminated the ability of Bitcoin to be anonymous.
2. Government - Can the government really allow a cryptocurrency who has been used in the dark web successfully be in some kind of no regulation? Of course when they see that Bitcoin has the potential to be used in illicit activities from money laundering to tax evasion you know the government won't allow this to have some kind of restraint towards on how it can be used freely.
1. Blockchain - How can Bitcoin be anonymous if literally all transactions made through blockchain can be shown to everyone along with dates, amount, and transaction fee? How can Bitcoin be Anonymous if Blockchain is also known as a "digital ledger" for Bitcoin's transaction? A lot of the authorities are already connecting addresses and linking them to illicit activities with the use of Blockchain so the blockchain alone eliminated the ability of Bitcoin to be anonymous.
2. Government - Can the government really allow a cryptocurrency who has been used in the dark web successfully be in some kind of no regulation? Of course when they see that Bitcoin has the potential to be used in illicit activities from money laundering to tax evasion you know the government won't allow this to have some kind of restraint towards on how it can be used freely.
Here is the simple answer to that question.
A bitcoin transaction is not anonymous/pseudonymous because it has transparent record in blockchain and every one of us can trace where it is landed.
BUT, it can protect someone else privacy if you own bitcoin, NOT on the exchange and any custodial wallets that provide KYC. Holders of bitcoin will become anonymous but not the bitcoin itself.
A bitcoin transaction is not anonymous/pseudonymous because it has transparent record in blockchain and every one of us can trace where it is landed.
BUT, it can protect someone else privacy if you own bitcoin, NOT on the exchange and any custodial wallets that provide KYC. Holders of bitcoin will become anonymous but not the bitcoin itself.
For me, bitcoin is really anonymous when you look on block explorer there is no way you can identify each address only the site admin or exchanges and wallets administrators have the ability to track those addresses. Unless they will release it to the public which unlikely to happen or the website got hacked. If you have run KYC on a single site that is a given possibility and risk that your data might be exposed so be careful in doing KYC. Alternatively, we can acquire bitcoin through ATM's and other platforms with no KYC. But to have bitcoin adaption I guess KYC is really needed given that government regulation is very strict.
If the creator of Bitcoin Satashi Nakamato created it as an anonymous currency, why does everyone say that it is not anonymous?
Your account is registered in 2018 and I am sure you are not new here. If asking can help you understand thing that make you confused, then reading will also make you better understand what you dont know. Hopefully the two articles below can help you find out about that question.In my opinion, regarding anonymity, I dont think bitcoin should be completely anonymous on the grounds that bitcoin can be used as a special means for people to commit criminal acts such as money laundering and so on. For that reason, I believe that all bitcoin innovation can help users gain complete control over their own money and allow users to make transactions that are different from usual.
I don't think BTC would've had the same success if it was anonymous.
With 100% transparency instead of 100% anonymity, you have a currency whose ledger could still be checked and researched by intel agencies. If it was 100% anonymous and no authority had even a clue about where each coin goes, they would've kicked it out of the world from day 0 and this forum would've probably be located somewhere on a .onion domain.
Satoshi was simply a genius. By creating a pseudonymous coin, he/they created a coin in a friendly way in regards with the authorities - a coin that would not instantly become a state's enemy.
With 100% transparency instead of 100% anonymity, you have a currency whose ledger could still be checked and researched by intel agencies. If it was 100% anonymous and no authority had even a clue about where each coin goes, they would've kicked it out of the world from day 0 and this forum would've probably be located somewhere on a .onion domain.
Satoshi was simply a genius. By creating a pseudonymous coin, he/they created a coin in a friendly way in regards with the authorities - a coin that would not instantly become a state's enemy.
If the creator of Bitcoin Satashi Nakamato created it as an anonymous currency, why does everyone say that it is not anonymous?
He didnt create anonymous currency. He created currency without central authority. Thats it.All transactions are public, this is hell for privacy actually, we need improvements in that matter and people are working on it as we speak.
Satoshi Nakamoto made Bitcoin pseudo anonymous, because this technology would not have been adopted if people knew everyone's financial matters. (How much coins you have and what you spend it on) He also knew this technology would also not work if it was 100% anonymous, because criminals would misuse it for criminal intentions. (Paying for Child porn and using it for money laundering and scams)
So, if you do not link your true identity with your Bitcoin address, then your financial information should be secure. The moment when you signup for a third party service, like some regulated exchanges / Wallet providers / Regulated Gambling sites etc.. you give up your anonymity and your financial history can be traced on the Blockchain to that Bitcoin address.
People have developed ways to obscure your transaction history, with the introduction of Mixer services, if you want to be more anonymous.
So, if you do not link your true identity with your Bitcoin address, then your financial information should be secure. The moment when you signup for a third party service, like some regulated exchanges / Wallet providers / Regulated Gambling sites etc.. you give up your anonymity and your financial history can be traced on the Blockchain to that Bitcoin address.
People have developed ways to obscure your transaction history, with the introduction of Mixer services, if you want to be more anonymous.
Bitcoin is not (and never was) anonymous.
With an anonymous currency, it has to be impossible to identify a single participant.
This means the data can not be linked to an identity.
This is not the case with bitcoin. Bitcoin is pseudonymous.
You can easily identify single participants by their addresses / public keys. And once you have one connection between a pseudonym and the real identity, everything is exposed. That's not anonymity.
With an anonymous currency, it has to be impossible to identify a single participant.
This means the data can not be linked to an identity.
This is not the case with bitcoin. Bitcoin is pseudonymous.
You can easily identify single participants by their addresses / public keys. And once you have one connection between a pseudonym and the real identity, everything is exposed. That's not anonymity.
I don't know what community you're in where everyone is saying that bitcoin is anonymous, but it's a typical statement from a misinformed person. It's sometimes a misconception that just because having a bitcoin wallet doesn't require personal information for registration like you have with a typical online account, that it's automatically anonymous; them not knowing that the blockchain is actually fully transparent.
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Bitcoin is pseudonymous. You can't know who the owner of an certain address but all the transaction of an address is available to everyone. If you can know any of the address owner, it is easy to know what he is doing with his bitcoin.
There was no point of making the blockchain and all the transactions in it public
Then how could you keep a record that every user has to check to know the balance of their own addresses? Maybe it's possible, but I can't think of a way to make something private in a decentralized network.How do you make sure nothing is unruly about other financial instruments?
Something interesting: in the past, the core client enabled sending to IP addresses... you can imagine why that was changed.
Satoshi said that bitcoin is psydoanonymous and asked to add more layers for security reasons. This extract can explain well the vision of Satoshi :
We saw how the devs implement the Lightening Network to maintain privacy in bitcoin. Some others chose to mix their coins before to use them. While some others started working on another protocole called MimbleWimble which can pave the way for bitcoin and other major cryptos to adopt this new tech or even other similars. Take a look at Grin and Beam for better understanding.
Quote
As an additional firewall, a new (address) should be used for each transaction to keep them from being linked to a common owner [...] The risk is that if the owner of a (address) is revealed, linking could reveal other transactions that belonged to the same owner.
Source: Bitcoin WhitepaperWe saw how the devs implement the Lightening Network to maintain privacy in bitcoin. Some others chose to mix their coins before to use them. While some others started working on another protocole called MimbleWimble which can pave the way for bitcoin and other major cryptos to adopt this new tech or even other similars. Take a look at Grin and Beam for better understanding.
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