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How To Demonstrate That Bitcoin Is Not Anonymous

February 4th, 2017 | by BTC News
How To Demonstrate That Bitcoin Is Not Anonymous
bitcoin security
by Philip McMaster PeacePlusOne_!/

How To Demonstrate That Bitcoin Is Not Anonymous

There are many people who believe that any transaction conducted using Bitcoins can be completely 100% anonymous, but the truth is that this is just a myth from people who do not understand how Bitcoin works. It is actually impossible for there to be anonymous Bitcoin transactions for the simple reason that every single Bitcoin transaction that has ever occurred is stored in a publicly available file called the block chain which anyone can download on the internet.

What Bitcoin Information Is Publicly Logged?

The information that is stored about all Bitcoin transactions that have ever happened is actually only what appears to be random numbers and random Bitcoin addresses, but the critical point that makes using Bitcoin not nearly as anonymous as many people think is that if you can tie a single one of these transactions to an established individual or identity then you could potentially find out the identity of all other addresses that are tied to it. The conclusion here is that Bitcoin is not actually anonymous but is in fact semi-anonymous, and if any transactions have ever been flagged as potential illegal behavior such as money laundering then it can be possible to tie that activity to a specific individual.

How To Improve Your Bitcoin Security

There are several industry best practices regarding the Bitcoin digital currency that can be implemented in order to make transacting in Bitcoins as safe, secure, and possibly anonymous as possible. Remember that there is no identity information publicly available in the block chain, but figuring out one actual identity can open the door to figuring out multiple identities potentially including your own. One of the industry best practices that you can implement is to use a new Bitcoin address for every transaction in order to make it much harder to correlate a number sequence in the block chain with a real person.

Staying Off The Radar Of Bitcoin Hackers

One of the things that makes Bitcoins a computer hacker’s dream come true is that transactions cannot be reversed, however just because this is true does not necessarily mean that the hacker can get away without having their identity revealed. There are several horror stories on the internet of people have large amounts of Bitcoins stolen from their accounts, and so far it has proven to be difficult but not impossible to track down individual people who have used Bitcoins for illegal purposes. If you want to really succeed with Bitcoin then you should understand as much as possible about Bitcoin security and industry best practices, and these tips should help you understand more about safety and anonymity regarding this digital currency.

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