What are the privacy concerns with Bitcoin?

Privacy concerns with Bitcoin arise from its public ledger, where all transactions are recorded and can be viewed by anyone. Although Bitcoin addresses are pseudonymous, they can potentially be linked to individuals through data analysis and correlation with personal information.

Users’ transaction histories can be traced, exposing financial behaviors and patterns that might compromise privacy. Additionally, exchanges and regulatory requirements often necessitate identity verification, further diminishing anonymity. These factors create a balance between transparency and privacy, making it essential for users to adopt additional privacy measures if they seek enhanced anonymity.