There was a time where Bitcoins transactions were thought to be super private but unfortunately one should understand that with the upcoming years with the advancing technologies people have identified it to be pseudo transparent .
One can actually trace the address and if a person uses the same address a lot of times it is really not hard at all to connect it to an identity because of the KYC that now every wallet needs .
Yes some wallets are exceptions like the hardwares , paper wallets and other wallets which does not require KYC but that does not stand for most of the people out there.
One can actually trace the address and if a person uses the same address a lot of times it is really not hard at all to connect it to an identity because of the KYC that now every wallet needs .
Yes some wallets are exceptions like the hardwares , paper wallets and other wallets which does not require KYC but that does not stand for most of the people out there.
Unfortunately, that's the harsh truth Bitcoin is facing today. It was once thought to be private, only to be discovered that anyone can link your identity with any given address' transactions on the public blockchain network. I believe that most people had the misconception of Bitcoin being private in its early days since there were little to none block explorers across the web. Despite Bitcoin's transparency, it's still possible to perform private transactions on the BTC blockchain by relying on diverse solutions within the crypto space. You can use a new BTC address for each transaction you're going to perform on the network, use a wallet with a built-in mixer (like Wasabi Wallet or Samourai), or even use a Bitcoin mixer service online. Additionally, is possible to send BTC to many addresses at once on a single transaction to save both on fees (Batch Transactions) and even increase your privacy.
If you're still not comfortable enough in using Bitcoin privately with the aforementioned solutions, there's always the choice of using a privacy-oriented coin for your utmost sensitive transactions. Both Monero and Grin fit the bill nicely as they're private by default. You'd simply send "x" amount of coins on the Blockchain without having to recur to a separate solution. The process is simple enough for anyone to understand. Under the hood, privacy coins like Monero and Grin obfuscate your transactions making it nearly impossible for governments or other third-parties to track & trace your activity on-chain. It's said that Bitcoin has some sort of privacy within the Lightning Network, since transactions are performed in an off-chain manner.
Nonetheless, the decentralized nature of crypto allows you to circumvent KYC whenever it's necessary. If you want convenience over censorship-resistance, then verifying your ID would be the best path to take. But if you care about privacy, then I'd suggest you either trade your Bitcoin personally to Fiat or use one of the aforementioned solutions/methods to remain as anonymous as possible. Most people don't know that Bitcoin is not private by default, leading them to believe that their identity is safe from "prying eyes". With proper education, people will be encouraged to preserve their privacy on the Blockchain whenever it is necessary. Just my thoughts
