Can Bitcoin really be tracked?

Myths claim that Bitcoin is mainly used as a tool for money laundering, tax evasion or other criminal activities. In this kind of context, the prevailing view has long been that Bitcoin is anonymous and therefore safe to use for criminal purposes. Nowadays, however, it is generally accepted that transactions with Bitcoin ARE traceable, so many people are moving from Bitcoin to other cryptocurrencies that are more focused on anonymity.

Are Bitcoin transactions anonymous?

In Bitcoin transaction is relatively anonymous but not entirely so. In order to get a better idea of what is actually happening with the the anonymity of bitcoin we need to go a little deeper into how the technology behind bitcoin, or blockchain, works.

The anonymity inherent in bitcoin is that you do not use your name, social security number or identity to make transactions, instead you use a public address that replaces your traditional bank account.
The big misconception is that Blockchain works like a black box where nothing that happens on the Blockchain is visible to outsiders. The truth is actually the opposite, i.e. that the blockchain is like an electronic automatic logbook that cannot be falsified or hidden. All transactions are visible to everyone and hence can bind transactions via Bitcoin. to your identity if they can link you to the Bitcoin address you used.

How can you track a Bitcoin transaction?

To track transactions, you need a Bitcoin address generated in the user's wallet. This address is part of the blockchain and all you have to do is search the address via a node to find transactions back in time ? all the way from of the wallet creation! On the other hand it is difficult to know who owns the wallet if it is not held by an exchange where you can verified by passport, national ID or driving licence.

Can Bitcoin transactions be made anonymously?

The short answer is no but it However, there are wallets that offer coinjoin, which means that several users, usually hundreds, get together and mix their Bitcoins, which are then distributed randomly. This makes it even more difficult for a user to follow the transactions because hundreds of transactions are mixed. 

The disadvantage of mixing their Bitcoins with other users is that you never know where the money goes. comes from. Therefore, you may find yourself involuntarily involved in money laundering and other criminal activities that you would prefer to stay away from. 

Are there anonymous cryptocurrencies?

?Nowadays, Monero is the most popular cryptocurrency for better conditions regarding anonymity. It is created on a protocol called CryptoNote and is a unlike The Bitcoin protocol built on a different algorithm that is based on more obfuscation of the blockchain. 

Monero is just like Bitcoin is decentralised but focuses on personal privacy. It has strong community support as it is also built on open source. It was first launched in April 2014.

Vanliga Frågor & Svar – FAQ 2024

Are Bitcoin transactions anonymous?

A Bitcoin transaction is relatively anonymous but not entirely so. You do not use your name, social security number or other form of identity to make transactions, but instead a public address that replaces your traditional bank account. This means that it can be difficult to link transactions to a specific person. However, all transactions are visible on the blockchain, making it possible to trace transactions back in time if you have access to the right information.

How can you track a Bitcoin transaction?

To trace transactions, you need access to the Bitcoin address used in the transaction. This address is in the blockchain and can be searched for via a node to find transactions back in time. However, it can be difficult to know who owns the wallet if it is not held by an exchange where you have verified your identity.

Can Bitcoin transactions be made anonymously?

There are wallets that offer coinjoin, which means that several users join together and mix their Bitcoins. This makes it more difficult for a user to track transactions as hundreds of transactions are mixed. The disadvantage of using coinjoin is that you do not know where the money comes from and can therefore be involved in criminal activities without realising it.

Are there anonymous cryptocurrencies?

Yes, there are cryptocurrencies that are more focused on anonymity than bitcoin. These currencies usually use technologies like coinjoin or other methods to make it harder to trace transactions. It is important to note that anonymity is not always a sign of criminal activity, but can also be important for people who want a higher degree of privacy and confidentiality in their finances.