Bitcoin may not be as private as you may think. In its early days, digital currency gained a false reputation as a completely anonymous payment system, much like an electronic equivalent of cash. This was mainly because of its widespread use on deep web niches and dark net market places frequented by shady individuals. However, Bitcoin isn’t really anonymous. In fact, it may well be a lot less private than more conventional payment methods like credit and debit cards. It is up to their policies as well as your stated preferences whether they can provide such data to government agencies and other parties, if they will be asked for any information.
While you don’t necessarily have to provide your personal details in order to use a Bitcoin wallet, there are many ways that your pseudonymous wallet address or addresses can be traced back to your real-world identity. This is where Bitcoin mixing comes in handy.
Bitcoin mixing service is one of the most common and efficient methods of improving your financial privacy when using Bitcoins. Mixers or tumblers work by mixing your payment up with other payments from other users, effectively making it nearly impossible for any adversary to work out who is sending money to whom. An observer may know your addresses and therefore see that you have received or sent a certain amount of money, but they won’t know to whom you have made the payment or from whom it came from if you are using a bitcoin mixing service.
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