Whenever consumers and enterprises think about digital cash, the discussion will ultimately turn to Bitcoin. More and more people are starting to realize the limitations of Bitcoin anonymity, which makes it more appealing as a replacement for cash and traditional payment methods.
Anonymity: Bitcoin Vs. Banks
When it comes to Bitcoin anonymity, there are far more limitations than most people take into account. Generating a Bitcoin address will not require personal information, unlike opening a bank account. But that is only as far as the anonymity goes, as every transaction on the network is publicly available for everyone to see.
Granted, the data itself is still completely anonymous, as there is no personal information broadcasted when making or receiving a payment. This may give the cryptocurrency an entirely anonymous appeal, but that is not the case. In fact, there is an actual blockchain analytics task force as part of Homeland Security, which looks at Bitcoin transactions to find any suspicious activity.
Comparing this to the traditional financial sector, using a bank is more anonymous than Bitcoin is in its current state. Users can only see their own transactions whereas