Anonymity is a key selling point of Bitcoin for a lot of people. The ability to buy and sell things online without having to divulge personal information sounds great but how anonymous are Bitcoin transactions? The funny thing is they aren’t. All Bitcoin transactions are recorded in the blockchain and are completely public. So, anyone can see the number of coins transferred and to whom. The real question is can you be traced from your Bitcoin address? Here is what you need to know about Bitcoin address tracing.
What is a Bitcoin Address?
A Bitcoin address is extremely similar to a bank account number and can be used to send coins from one person to another. The Bitcoin address is attached to a cryptocurrency wallet where the coins are stored. When these addresses are used for the first time they get entered into the blockchain and now anyone can see how many coins were sent between the two addresses.
Your private information like your name, contact information, etc. is not revealed. However, your Bitcoin address is now out in the ether and visible to everyone willing to look. A good way to retain a certain amount of anonymity is to create several crypto wallets and only use certain addresses for specific things. That way all your eggs aren’t all in one basket. For example, you may choose to use a certain wallet for purchases of goods and services and create a separate wallet for transactions with a specific person.
All of that said, there is still one question left unanswered: can you be traced from your Bitcoin address?
What You Need to Know About Bitcoin Address Tracing
The question as to whether or not you can be traced from your bitcoin address is complicated. To quote one of my favorite memes at the moment, “no but technically yes.”
The thing is, Bitcoin transactions are anonymous to an extent but it really comes down to how deep the tracker is willing to dig. When transactions are recorded it’s just this number sent this much to this number. So, technically your personal information is not being broadcasted but your Bitcoin address is.
If you have ever posted that number online it can be found. That means if you ever publicly posted your Bitcoin address for a Gofundme, CashApp account, etc., a would-be investigator could possibly track you down.
The most important factor is who is trying to track you down. If your second husband’s third uncle Lester is rooting around you are probably pretty safe unless he’s a certified hacker. If the Feds are interested in your online activity, then they can probably put the puzzle together. Tracking down nefarious activity is their job and they are backed up by the deep pockets of Uncle Sam.
With that being said, it is important to keep in mind that nothing on the internet is untraceable. It just depends on the skill level and effort of the people searching. As long as you keep your transactions above board and don’t go advertising your Bitcoin address on the sunset strip, you’re pretty safe from prying eyes.
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