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    Author Topic: Is Bitcoin legally anonymous  (Read 2549 times)
    enquirer (OP)
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    August 05, 2011, 02:02:06 AM
     #1

    So every transaction can be traced to its origin. If I connect to the network through TOR and generate 50 BTC, and then buy some substance with it, it's very hard to trace that to me. But even if I bought coins at an exchange, and they, as required, have  verified my identity, I can still do the following:

    - create another wallet (possibly online, like instawallet)
    - transfer some BTC to that wallet
    - buy substance with that second wallet
    - erase that second wallet

    now I can always say in court that I paid some other guy for his service (drug withdrawal consultancy?) and that's him who later bought the substance. While obvious lie, can that be considered a proof beyond reasonable doubt that I indeed bought the substance?
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