Is Bitcoin Really Anonymous?

Bitcoin is often perceived as an anonymous currency, but this perception is largely a misconception. In reality, Bitcoin is pseudonymous, meaning that while transactions are not directly linked to real-world identities, they can still be traced back to individuals through various methods. This blog will explore the nature of Bitcoin's pseudonymity, the transparency of its blockchain, and the tools available to enhance privacy.

Coin Mixing: This involves combining multiple Bitcoin transactions to obscure the origin of funds. It aims to break the link between the sender and recipient, enhancing privacy.
Privacy-Focused Wallets: Wallets like Wasabi and Samourai offer features designed to improve user privacy by mixing coins and using techniques like Chaumian CoinJoin.
Virtual Private Networks (VPNs): Using a VPN can help obscure the IP address associated with a transaction, adding another layer of privacy.