Hey guys, I understand that Bitcoin is decentralized and doesn’t require ID or permission to use. That part is clear to me and I’m not questioning that. But what I’m still trying to figure out is how to actually get Bitcoin and stay anonymous if at some point you most likely will use fiat to get it.
Let’s say you try to go through a p2p method online, that still involves paying someone and that payment usually has to come from your fiat money. So how do you do that without creating a link to your real identity? That’s the part I find confusing. It’s not about Bitcoin itself, it’s about the process of converting the fiat to Bitcoin in a way that doesn’t leave a trace.
I’m also curious how people used to do it in the earlier days, like in 2014 or 2015. I guess it was easier back then but I don’t know what the usual methods were. Were they just doing regular bank transfers or was there something else people used to stay private?
If someone with real knowledge/experience can explain how this is done in practice I will be grateful for and than you.
Bitcoin is not a coin for anonymity but Monero is. Bitcoin helps you to gain more privacy than traditional fiat allows. Bitcoin is not the best choice for anonymity because it uses blockchain, which is an open public book were every Bitcoin transaction is recorded. Think about blockchain like a public phone book (we had that in the Soviet Union) where everyone's home phone number was recorded in a book that was sold everywhere.
By buying P2P, you do not completely hide traces but you have to compare this action to buying Bitcoins from an exchange or a bank. When you buy it from an exchange, it's traced, it's written that these coins directly belong to you but when you buy from a peer, it's not labelled as a Bitcoin transaction and it will be much harder to associate coins with you without deep investigation.