The short answer is yes and no. But I bet you won’t settle for a quick answer so I will try to explain why bitcoin is private to a degree but can be tracked, ending up tracking that it is your bitcoins.
Bitcoin basic privacy
You might have heard the argument that bitcoin is not private and you might also have heard the argument that it is private, and yes bitcoin is private to an extent. And to understand why bitcoin is only private to a degree you need to realize that bitcoin is based on a public ledger. Therefore, you can follow all transaction at all times., What does mean is that if you choose to donate to this website at 1DV6qS5hZsMidPn8cvKJQmwf1vNtskt2Lg You will be able to see the transaction on the public ledger. And since you know the wallet address belongs to this website you actually know how much I have in that wallet. But it gets a little harder if you don’t know who owns the wallet.
Let’s say I make a paper wallet offline then the address has never been shown to the internet and thereby cannot be affiliated to any person. And my train station remains private because no one knows it is my wallet. And even though the wallet address has never been shown to the internet, I’m still able to send bitcoins directly to it. This is because the network only Catholic the address fits the parameters. As long as the bitcoins remain in that wallet I do not need to fear people knowing it is mine, but as soon as I transfer the funds out of the wallets. I run the risk of exposure either because the world adverts are linked to my name or in rare cases because someone noticed what IP address I used to send the funds.
How can a wallet address be linked to your name?
There are several ways a bitcoin wallet address might be linked to your name, but most of them require you to sign up for something. One of the ways a tax authority might find your name and connected to a wallet address is if you sign up for an exchange.
Other ways I have heard enough of that once you exchange your bitcoin to FIAT you do it over an exchange with an account linked to you and someone is listening in for your IP address and using that too determined from where you are sending your data. This problem can be easily circumvented using a VPN from services like NordVPN And if you want to know more about protecting your identity online read our article on the subject which can be found here.
We can include that bitcoin is private to the extent of how you use it, but it’s not a real privacy coin. We will be following up this article with the article giving you an overview of the full privacy coins which we can recommend using if you want complete privacy.
And we can also conclude that using bitcoin for illegal activities is quite stupid since we can track down who has had the Bitcoin and utilized the Bitcoin. So we have shut down an anti-bitcoin argument by using the simple logic bitcoin that is private until you reveal yourself. And you need to reveal yourself in order to exchange bitcoin into Fiat currency.
And if you want to make it truly private wallet we have made a guide on how to create a paper wallet which the internet has never seen, and that you can find right here.
The writers writing under the pseudonym of crypto Media service Iis shadow writers all with experience in cryptocurrency of at least 3 years, they have either been invested in trading or worked on the technical side of blockchain technology but wishes to stay anonymous for multiple reasons