Bitcoin is not totally anonymous, as a matter of fact its blockchain is visible by everyone and the public wallet also is visible by any goverment agency.

So they can track you down if you're not so smart. That must not happen in the digital world becouse your privacy is not secure enough and you need it if you don't want to be spied.

government can trace  the details which we uploaded to exchange  because exchange's asked for kyc  to verify identity for withdrawl  . same like that buying and selling also from peer to peer , some persons  need proof of verification kyc before u sell ur btc or buy btc from them for cash because some people scam the innocent people.  government can trace the email or ip address or internet also for checking the social media , and email's they will know from where  buying and selling is happening also.

They can't know. You are anonymous with bitcoin. You can't be track. It is decentralized.

Many ways to get the government to track who has used Bitcoin with transactions or have expensive items without doing any work

The bitcoin transaction does not reveal identity info. The purchase can be connected to you, only, if the merchant keeps a record of the transaction id connected to a goods receive address. Online goods are sent and the IP address is recorded. In this case any vpn provider can help you to keep IP information out of reach. The bitcoin transaction by itself, does not reveal personal information. Personal information can be revealed by looking for other data that are connected to the transaction.

Yeah it all depends on how you use it, and what for. If you're signing up for exchanges, the government could theoretically approach that exchange and demand records of all who are registered from their country. But then what are they going to do? Knock on everyone's doors and shake them upside down until all the bitcoins fall out of their pockets

The thing I wonder about is when these exchanges are going to be forced to report to the tax authorities, like PayPal and eBay were several years ago. People used to make lots of tax-free money selling stuff on these sites, but I wouldn't dare now. Anything that goes through PayPal is definitely being sent to the tax authorities, at least in western countries. How long until major exchanges are forced to do this as well?

Nowadays it's easy to other especially to government to trace if you have a bitcoin because our technology is hi-tect, just search what you want to know and it show you and you get information by tracking down our wallets, verifying with your original address and photo and your real account.

Your Bitcoin will not be discover by the government because it is decentralize that is why other nation is against of Bitcoin existence but still your transaction will be trace every time you will convert your Bitcoin to fiat in your local exchanges as per government regulation policy

Yes this is why they introduced all those KYC and AML regulations, to be able to track people and make them pay taxes. But it is still possible to go under radar, it requires some determination and knowing what one is doing, but it is definitely possible.

They can only trace it through the blockchain transaction being made but the problem is, they can only see the addresses on it. Not unless if they know your btc address only they know whether you have bitcoin or not as to the amount of bitcoin going in and out of your wallet.