Is A Bitcoin Transaction Anonymous or Not?

Category: Finance 3 0

So many benefits have been ascribed to bitcoin transactions over the years. For one, bitcoin transactions do not have to go through a third party, like government agencies or banks.  This is rightfully so. As a result of this, those who transact business using bitcoin will have complete control over their funds. One other benefit associated with bitcoin is that it is a completely anonymous means of exchange in that no one can trace a bitcoin transaction. As a result of this, you can send and receive bitcoin is without anyone being able to trace that transaction to you. As a result of this, it is believed that bitcoin transactions are not retractable. This is one of the reasons why many are earlier to earn bitcoin so that they can benefit from its incomparable features.

But is bitcoin transaction truly untraceable? We will look into this in the remaining part of this write-up. 

Bitcoins anonymity 

Many beginners in bitcoin think it offers complete anonymity and those bitcoin transactions cannot be traced. Recent findings have shown facts to the contrary; bitcoin transactions are not entirely untraceable. In fact, many of the professionals in digital currency technology already understand and accept this fact: that bitcoin transaction is not entirely anonymous. This is one fact you too need to bear in mind as you make an effort to earn bitcoin.  You do not need to bother yourself about all the technical jargon behind this discovery. You only need to always bear it in mind that the bitcoin transaction you thought could not be traced can actually be traced. 

Before you can make any bitcoin transaction, you will need to use a bitcoin address, which is represented by a stream of numbers and letters. The address is considered as an analog to email address. Bitcoin can be sent to or received from a bitcoin address, the same way an email and be received from or sent to an email address. There is also a public online ledger in which every bitcoin transaction is recorded and everyone on the blockchain can see the content of the ledger. All that needs to be done is for someone to search for your bitcoin address on the ledger to know about the bitcoin transactions you have been involved in. 

Bitcoin does not record the identities of those involved in a particular bitcoin transaction. Even at that, it is possible to link your identity to your bitcoin transactions. It may take time and effort and time, but it is possible.                  

         

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