A few months ago a media report suggested that the United States Internal Revenue Service (IRS) had sent out letters to cryptocurrency holders reminding them of their tax obligations. This is quite startling because prior to this revelation it had been common knowledge that decentralized cryptocurrency transactions were anonymous and untraceable.
In fact, the inability to trace bitcoin or altcoin transactions is part of the many reasons some authorities were and are still reluctant to embrace privately issued cryptocurrencies.
When Bitcoin was created, the vision was for it to become a peer to peer trading currency for internet based transactions, which is censorship resistant. Â The idea is for trading peers to settle obligations in much the same way as they would with hard cash, only this time digital cash would be used.
Just as cash transactions between peers cannot be traced, similarly the vision is for Bitcoin or cryptocurrency transactions on the internet to be untraceable as well.
However, according to the Coindesk report, the sources quoted suggested that the IRS may have found a way of unmasking the identities of those engaged in Bitcoin transacting as well as the nature of the transactions.
But can cryptocurrency transactions be traced?
Well according to claims made by Chainanlysis, there is an innovative software which can trace and reveal identities of those using or trading with bitcoin or other cryptocurrencies.
According this tech firm the software can follow Bitcoin as it moves from one wallet to another, and eventually to an
Posted from my blog with SteemPress : https://africablockchainmedia.com/news/tracing-bitcoin-transactions/2019/12/03/
Hi! I am a robot. I just upvoted you! I found similar content that readers might be interested in:
https://bitnewsbot.com/can-bitcoin-purchases-be-traced/