I've heard it said numerous times that bitcoins are anonymous. But how can that be the case if all transactions between every bitcoin address is public in the block chain? If for example I use BitInstant to buy bitcoins through a cash depositwhich requires using my nameand have it sent to a specific bitcoin address, then couldn't BitInstant just save my bitcoin address to my name and be able to track exactly where those coins go forever using the block chain?
As long as you're buying bitcoins with dollars, I can't see how anyone could be sure they're completely anonymous.