I guess that question is more of a individual question that each of us must answer, however, in general terms the overall answer is probably "yes"!
One of the major benefits of using Bitcoin is because it is anonymous, or at least mostly anonymous, right?
We can move money around all over the world if we want to without revealing explicitly who we are.
That was the dream at least.
However, it looks like those days might be numbered.
The truth is that Bitcoin is less anonymous than people think.
According to a report out recently, the IRS is currently using special software to reveal Bitcoin users identities in order to find out who is failing to pay their taxes (among other reasons probably).
A contract was discovered between the IRS and Chainalysis where it was revealed that the IRS is paying them to help identify the owners of digital wallets.
Not that surprising, but how much do they really know?
That is where it gets a little scary...
A letter from the co-founder of Chainalysis to the IRS reveals that the company has information on over 25% of all Bitcoin addresses.
A screenshot of the letter can be seen here:
Not to mention they have tags on other accounts which may be used to find the identities of those accounts at some point.
Chainalysis is based in Switzerland (ironically?) and has an office in New York.
The IRS is out for blood.
The hiring of Chainalysis goes right along with the earlier crackdown on Coinbase by the IRS. Where they tried to get information from Coinbase on all their accounts in order to catch tax evaders.
Luckily Coinbase wouldn't play ball, so now the IRS is requesting information only on suspected tax evaders.
The IRS claimed that only 802 people declared a capital gain or loss on Bitcoin in 2015, which is a shockingly small number considering millions of transactions took place during that year (including hundreds of thousands by Americans) and the coin went from roughly $12 to $1200 over a couple year stretch.
There is a very high likelihood that many people made a lot of money during that time but decided they didn't have to report that income.
The IRS wants a piece of the action.
Bad news for some...
The bad news is that there are likely many people who thought they had gotten away with not reporting their gains from 2013-2015, and this new contract makes it look like these people are about to have some Bitcoin related tax trouble in the very near future...
The slight glimmer of hope is that the IRS seems to be focusing on transactions over $20,000, (at least they were with Coinbase), so it appears they are mostly going after the larger accounts.
Which should give a little comfort to the little guy who perhaps also didn't report his gains...
Stay safe and stay informed my friends.
Source:
http://fortune.com/2017/08/22/irs-tax-cheats-bitcoin-chainalysis/
Image Sources:
http://www.anonews.co/anon-war-neonazi/
http://fortune.com/2017/08/22/irs-tax-cheats-bitcoin-chainalysis/
Follow me: @jrcornel
All income needs to be report. Period. If the USA is able to track down evaders using numerical accounts in safe havens hidden by identity and foreign corporations surely they are going to find out if they want to.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Privacy is surely one of the main reason why people started and invested in Bitcoins and, as you so so well yourself, it is not surprising to see the IRS colluding with the Chinese trying to mingle in such affairs...
This single fact may very well bring forth a reassessment of the value of cryptos by many involved and therefore provide for a decentralization of investments toward Bitcoins into a much wider realm of cryptocurrencies that actually provide for a full anonymity. It wouldn't surprise me and actually greatly look forward to that day, especially now that we have the technology to do so.
Great article, as always, thanks! Namaste :)
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Good comment @eric-boucher !
I look forward to the day bitcoin is replaced by better cryptos!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Thanks, same here!!! Namaste :)
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
May it be so!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
use a bitcoin mixer :)
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
What would a Bitcoin mixer do and is
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
They say they can trace your block address on the front and back of a washer now. Bitcoin might as well be Capital One.
I have a hypothesis on how to by pass prying eyes but it requires a ton of wallet swaps, exchanging and stealth using properly configured tails and tor. And it's far from tested so I won't go into details until it's worked out.
And while slick $100 cold wallets bought off a website may be the safest way to hold coins I'm not convinced yet that the actual contents can't be logged somewhere else everytime you plug in.
If you buy something on a normal market they probably have your wallet address, your home address, email and can tell if your holding, spending and where your spending. Running through a washer (that the feds probably own by now) is no good either.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
With a mixer it can be, that you get bad-marked btc also.
I think the better way is to get Monero and change back.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
It's better to switch to a privacy by default coin like Monero (XMR) if you are serious about privacy. If your security\privacy settings aren't default or extremely simple to use they will be mostly useless. Look at PGP as an example. Great encryption but awful usability so it's pretty much useless since people using it use it wrong and then leak their message or private keys
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Holly Molly. Why would anyone use Bitcoin mixer to get "shady bitcoin income" exchanged for others "shady bitcoin income" while using shady bitcoin mixer with anonymouse owner just waiting for big "order" to run away with?
Especially when I can trade BTC for XMR, Zcash or DASH, hide transaction history, and purchase back BTC from legit sources.
And this would cost me less than Bitcoin mixer service.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Those who understand how blockchain knew this all along. It's hard to be anonymous if you actually want to get money out. I guess you can go via other coins that are less traceable. I think some Steemit users are also finding out that their actions can be tracked and analysed.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Yep good point.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
it's not hard. It's damn easy.
BTC -> XMR (or Zcash or DASH) -> anonymouse transaction to another XMR wallet -> BTC -> LocalBitcoins or BTC ATM in neighbouring country.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
They are probably going after accounts over $20k initially. If it bears fruit you can be sure they will be going after smaller accounts as well. Get your taxes in order!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Yep, that is probably true. What is the statute of limitations? 7 years?
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Not where I live!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Not quite, @jrcornel
Once the 25K low-hanging fruit is gathered in, then they will go after the small guy, too.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I didn't know it was anonymous to start with!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Haha well you are already ahead of the game then! ;)
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
looool
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I don't actually see privacy in the blockchain, I see transparency.
Yes there are private coins, however, the main benefit of a truly open system is that no-one can hide, nor should anyone be trying to.
The main concern is now it is everyone's responsibility to properly manage their own universe and make sure everything has it's place.
Being sovereign comes at a cost.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Great comment! I couldn't agree more...
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
It's the opposite of it. The Blockchain saves everything. Just look at how the Gov has been tracking bitcoin through like 10 transfers through different wallets!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
So basically anyone who HODL Bitcoin will have to pay tax. What if in say 5 years 1 BTC is over 20k dollar?
Also maybe that is why Monero is getting more popular and the price almost doubled today (i read there were some other less legal things behind the price jump but still).
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
That is exactly why. That and more Bitcoin hardfork concerns are bubbling up again...
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
US Politicians will pass laws requiring the same identification needed at banks for exchanges. Bitcoin may become a government's dream, they can monitor and track every transaction.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I agree with you 50% but there is a way you can be sure you erased your track, blockchain wallet changes adresses often and you have a tons of ways to loose track of your bitcoins and also you have many ways to leave track when going in or cashing out.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
The greedy government will stop at nothing to get their way. The more main stream bitcoin will get the more aggressive the government will get at tracking and tracing. The sad thing is that other governments worldwide will follow suit. Lets see how far they will go with this :)
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Yeah, I have been under no illusion of Bitcoin being anonymous. I guess as long as you are willing to leave it alone, and not convert it to fiat dollars, then you are ok as well.
But I'm pretty sure that the IRS will find some large account to make an example out of and try to scare the masses into compliance.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Good post.
Nothing is anonymous if the government or someone with the money and power wants to find out something or get to someone they can do it in a heart beat. I remember someone telling me they wouldn't be surprised if the Gov. created btc to keep track of the dark web sites and bust them just to keep the fake war on drugs going. Who knows!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Now that is some pretty diabolical stuff right there!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
lol Hell yeah I had a stingray deployed on me I know what they can do. Scary stuff, well to me it was at the time it was happening! ;)
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Yes! The fact that Satoshi Nakamoto hasn't touched the 1 Million BTC he mined for himself just goes to show that even the founder realizes that any electronic trail can be followed. Apparently Chainalysis has some very sophisticated software.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I heard that BTC will hard fork around December, but will expectedly continue its upward trend until then. Just word on the street is all.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
At no point have I personally thought of bitcoin as an anonymous currency... just a convenient one. But it seems like a lot of other people want it to be, almost are trying to will it to be anonymous!
Better to just use an anonymous cryptocurrency (Zcash, Monero) if that is your outright goal.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Most exchanges I've visited require id, selfie pics, email, first and last names, and addresses. Most anything done online is tracked and traceable anyhow. The VPN proxy sites and apps could most likely be government owned and operated. Please be careful out there and just assume that "they" are watching you at all times.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
great post , yest bitcoin is anonymous
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
in this age of technology nothing is safe and anonymous
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
UPVOTED 100% SP | follow @nixthehammer for UPVOTES & Rewards
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Bitcoin mixer @@@@@@@@@@@@@@
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Good post !!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Bitcoin is not anonymous but pseudonymous:
https://totalbitcoin.org/bitcoin-is-not-really-anonymous-but-pseudonymous/
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I like the fact bitcoin, It's fully decentralized. But on the other hand the globalist will always find a way to control people.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I heard for a long time that the entire transaction chain can be tracked. And additionally it is easy to identify the recipient and the sender.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Nothing is anonymus, that's a sense they want us to buy as freedom. They just don't exists.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
go verge people
xvg
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Interesting posts and I like you always share about things I do not understand and because I am a beginner here ..i like you @jrcornal
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Lovely read 👌👑
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
As far as I know only Monero has strong privacy, encryption to make it anonymous, Bitcoin has been always transparent, except it was difficult to know which address belongs to whom, but we may guess that NSA knows it. Steem is very transparent.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Anonymity is so 20th century.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Nice info, I didn't know they knew so much already but it doesn't surprise me.
I wrote a lengthy post on how the blockchain will not bring the anonymous libertarian utopia, but instead a completely transparent one, about a week ago. Maybe somebody would like to read it and make my day, because I don't get all that many views: https://steemit.com/cryptocurrency/@pandorasbox/why-bitcoin-and-the-blockchain-will-not-bring-the-libertarian-utopia-you-desire-the-future-is-not-anonymous-and-perhaps-not-even
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Interesting post, I enjoyed reading it
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
yup, they just seized around 44k from a friend of mine...wtf!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
just curious, was it basic tax stuff or did he go into the DNM?
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
just happened the other day, haven't heard back from him yet. it was a levy I believe
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Thanks for the post. have heard varying things on how anonymous he system is. Of course makes sense that they would try and tax anything they can.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
anonymous is overrated, transparency yes!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
yeah, better use Zcash or Dash
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
This is not a good news for BTC community.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Just saw this here: https://www.coindesk.com
Oy vey
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Haha , bitcoin is one of the easiest to track. Crazy so many don't know this!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Of course the IRS will be going after their share. There's no anonymity exchanging crypto into fiat. Any financial institution will want some type of identifying information. They claim its to prevent terrorism, but we all know its to also keep track of any transactions so the government can get their share.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Yep. Well said.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Great post!
Worth upvotes and following!
Please follow me back :)
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
https://steemit.com/money/@dobartim/how-did-i-earn-from-usd-40-79-btc-for-8-months
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
The best way to really get out of the blockchain and be anonymous is via Monero, Zcash or Dash.
Coin mixers are just crap.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Wow this is actually quite surprising to me! I though it was way more anonymous! I guess nothing really is these days...
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
What if you spend your bitcoin using a MasterCard, as you can get from Xapo et al?
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
nah.. i don't think so... its annonimity is the reason it use started so widely around the globe...
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Stick to Monero if you really want to be away from prying eyes within crypto.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
The good question would be, IMO, which fraction of the largest bitcoin holders are within these 25%, no?
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
the question is.... is it a new mark of the beast? or it is not?
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Thanks
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Bitcoin was anonymous specially from 2013 to august 2017 but now I think its not anonymous more after improvements and governmental pressure.Specially for those who make transaction about 4 bitcoins or more.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
There is not such a thing in Blockchain tech. Now SegWit will kill pretty much the privacy Bitcoin was known for. 😠 😡
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
How to get free Stellar Lumens based on your bitcoin holdings:
https://steemit.com/bitcoin/@idealsceneprod/how-to-get-free-stellar-lumens-end-august-27-2017-rush-rush-rush
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Good post. I like. Again, a very good post
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I can get many informations on this useful post that can be my knowledge. I am a newbie dan I have to learn much more on cryptocurrency issue.
Thanks a lot my friend.
Warmest regard from Aceh, Indonesia.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
the fourth amendment is dead.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Great post! Keep it up.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Great post! Keep it up.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
xvg
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
This is truly remarkable.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
unmasked and not anonymous... i would say there are many out there in A BIT of trouble !
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
This scares the shit out of me!
Look at the flow diagram from the Mt.Gox theft.
I mean it's great they caught the bad guy but Bitcoin is pseudo-anonymous at best.
That flow diagram would be non-existent on chains with RingCT like #monero or #particl. There's a difference between Privacy and Secrecy everyone needs to understand and fight for.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
The IRS is going to get their money one way or another. That is how they roll. Not a big deal for me because I am poor as a church mouse.
Probably not so for many that are heavily invested in cryptocurrency. They are probably all headed for a heart attack.
This was a definite resteemable post! Thank you so much for the information.
Respectfully,
@sargento
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Congratulations @jrcornel! You have completed some achievement on Steemit and have been rewarded with new badge(s) :
Click on any badge to view your own Board of Honor on SteemitBoard.
For more information about SteemitBoard, click here
If you no longer want to receive notifications, reply to this comment with the word
STOPDownvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Bitcoin was never anonymouse. All information is public.
One can maintain some level of anonymity if he use brain.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I hope you enjoy your time here, a great community! Good post, good luck! (Remember to follow me )
Postingan Anda sangat berguna bagi saya, terima kasih
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
https://steemit.com/money/@dobartim/how-did-i-earn-from-usd-40-79-btc-for-8-months
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit