6 Is Bitcoin Untraceable?
Bitcoin is not anonymous, contrary to popular belief. And it’s even less so now that many bitcoin providers are implementing anti-money laundering measures. Many wallets and bitcoin providers are starting to require users to submit proof of identity and proof of residence to buy and store bitcoins.
Every bitcoin transaction is also recorded in a public ledger called the blockchain. These transaction records are permanent and not editable. While this acts as proof of transaction and protects against double-spending, it also means that it’s possible to trace where a bitcoin came from. Bitcoin’s reputation for anonymous criminal spending is largely a myth.