When Bitcoin was introduced in 2009, it was hailed as the thing for conducting anonymous transactions. Bitcoin was considered as an anonymous digital currency as using bitcoin didn’t and still doesn’t require any identity or address proof. In order to make a bitcoin transaction, all one has to do is enter the bitcoin wallet address of the recipient, followed by the amount of bitcoin that has to be transferred from the wallet to recipient’s wallet. Once the payment is executed, the recipient will receive the bitcoin within few minutes or about an hour (timing may vary these days due to block size and backlog issues).
Even while creating a Bitcoin wallet, one doesn’t have to furnish any details. If it is a wallet application on the computer, all one has to do is download and start using it. if it is an online wallet service then depending on the wallet service provider, one may have to enter their email id and phone number (may or may not be compulsory) or nothing at all. The assumed anonymity of bitcoin transactions also made it the currency of choice among the cyber criminals and deep web marketplaces. Deep web marketplaces like – the now-defunct Silk Road , Agora and many other sites exclusively deal with bitcoin and other cryptocurrencies as the mode of payment.
However, it was later found out that Bitcoin is not as anonymous as it was earlier thought. The digital currency is pseudonymous at best and bitcoin transactions, with enough effort, can very well be tracked and sometimes even the identity of parties to the transactions can be traced. It is not completely foolproof as someone well-versed with ways to cover tracks or not leave tracks can make themselves anonymous, but the very possibility of bitcoin users can be tracked makes […]
