Cryptocurrency continues to gain traction in mainstream media but, unfortunately, often misrepresents the asset class. A recent Wall Street Journal article reported that U.S. authorities ‘cracked Bitcoin’s anonymity,’ only serving to strengthen a false and long-held belief that Bitcoin is anonymous. While it is understandable where this sentiment comes from, it is fundamentally wrong.

Bitcoin is, in fact, pseudonymous and does not offer full privacy; it is possible to trace individuals through their use of Bitcoin. Though it requires effort, given the growth of the market and the more sophisticated tools available, it is becoming more and more possible to identify someone’s identity. As such, the arrival of digital breadcrumbs that can trace someone’s identity is a trend that has grown in the industry.

Though there are ways to overcome this pseudonymity, such as through the use of Bitcoin mixers, the U.S. government is well aware of this and has worked to shut down cryptocurrency mixers. One thing is certain, blockchain technology serves as the perfect place to store evidence; information stored on the ledger being immutable and traceable back to its very origin.

The Brock Street Journal report has come not long after New York Times also reported on the energy consumption of the Bitcoin mining industry, which was met with unhappiness by industry insiders, again highlighting the issue of mainstream media’s coverage and understanding of the crypto asset class. Many in the crypto community have long been urging for better education and understanding from mainstream outlets and conventional media outlets.



Other News from Today