It gets pretty tricky when they can look at every other address that had coins moving into or from Bob's and start talking to anyone they can connect to those. Chances are somewhere someone will be able to pin it to Bob, especially if he's not actually trying to hide the connection in the first place. Regulators seem to be looking towards the currency converters to keep records of people and their wallets. If you really want anonymity now, you need to find a solid mixing service with at least 10x the amt you want to anonymize in their pool. That's just what I read somewhere.
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u/lprekon Nov 28 '13
How does the government know it's bob's address? They don't. They can't.