First and foremost yes, bitcoin proveds anonymity. Bitcoin boasts about its ability to prove a level of protection for its users. Specifically the ability to hide ones identity, but are these claims true? For the most part, yes they certainly are. But there are ways around this, and they are strewn across websites the average computer user accesses every day.
A clear view into the anonymity.
The average website is a host for other websites, be it links or advertisements. These links register cookies. And the cookies are data packets that become stored onto the users pc similar to a back log. Data is logged in two places; the users computer, and the website the cookie is from. This doesnt seem like an immediate issue, however websites often give access of the cookie files to other websites, who in turn use it for marketing. This is more prevelant as similar websites add cookies to your pc. Data is tsent to markering agencies who share the data with more advertising companies who in turn customize certain ads the user encounters. All this occurs in an effort to seek out the consumer. But how does this end up being a breach in the anonymous nature of bitcoin?
Is Bitcoin anonymous?
Yes bitcoin is anonymous itself. However a website that allows bitcoin transactions can still link the activity to you. Since sata storage occurs in two places; one private and one public, the accessable areas are of course limited. The first hurdle into linking a user to the transactions is knowing the name of the user; an email address, a name. From here the websites that allow Bitcoin transactions come into play. These websites are a host to marketers via advertisements as stated previously. Many leaks of data occur on the market page. These leaks end up being the name and the email. This is the link from the consumer to the transaction which occur for marketing purposes and analytics.
Bitcoin transactions are saved on the block chain and considered anonymous. But the Third party websites that end up collecting the data lead a long trial that bypass the anonymity. This will end up being the main factor that governments use to control illegal transactions with cryptocurrencies as a whole. Protecting user identity makes bitcoin popular; and knowing about cookies as well as taking steps to protect yourself from them will only ensure safety.