Transactions and bitcoin users are anonymous

Bitcoin transactions are public, and so is their complete history, right from the
beginning. It is possible to determine at any time the accounts from or to which
bitcoins were transferred. In contrast, bitcoin users can remain anonymous. It is
often uncertain who owns which account.

However, since the majority of bitcoin
transactions is processed via the bitcoin exchanges, the actual number of
anonymous users should be limited. Almost all major bitcoin exchanges require
users to provide their identity cards or undergo a video ident procedure before
they are allowed to trade bitcoins. Moreover, many US exchanges also require
new users to produce an electricity or other bill directed to their address during
the registration.

Basically, bitcoin provides a similar degree of anonymity as
other legal means of payment. It is possible to use bitcoin for anonymous
payments, for example by printing out bitcoin or the access code to a bitcoin
account and exchanging this printout against goods or services. All in all, those
who want to remain anonymous can do so by using bitcoin or stick with cash.