CSE1006 Study Guide - Bitcoin, Public-Key Cryptography, British Association For Immediate Care

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At a literal level, anonymous means without a name which leads to two possible interpretations. Bitcoin is anonymous as you do not use your real name instead you are using the hash of the public key. The address that you use is a pseudo-identity which is not your real name is pseudonymity. If anyone is ever able to link your bitcoin address to your real-world identity, then all of your transactions - past, present, and future will have been linked back to your identity. If you interact with a bitcoin business, be it an online wallet services, exchange, or other merchant they are usually going to want your real- life identity in order to let you transact with them. An exchange might require your credit card details, while a merchant will need your shipping address. Even if a direct linkage doesn"t happen, your pseudonymous profile can be de-anonymized due to side channels, or indirect leakages of information.

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