How Bitcoin Keeps You Anonymous

How Bitcoin Keeps You Anonymous

The virtual currency Bitcoin is becoming the preferred payment method for pay per head services, for several reasons:

Convenience – Payments can be done from any device connected to the internet and confirmations are nearly instantaneous.

Cost Effectiveness – Little or no fees on transactions.

Security – Bitcoin’s security protocol makes it virtually impossible to have your identity stolen.

Anonymity – Your personal information is not associated with the finalized transaction.

Out of these, the one that is unique to this payment method is anonymity, and it’s the strongest selling point.

How is Bitcoin Anonymous?

There are 3 ways in which Bitcoin transactions protect your privacy:

• On a Protocol level, Bitcoin addresses are NOT linked to user’s personal informaton. Anyone can create a random address without having to submit any personal information, and there is no central authority that assigns addresses or can track who creates what.

• Bitcoin Transactions are also NOT linked to the user’s personal information. You can transfer bitcoin from any address you control to any other address in the network without any information about you recorded in the transaction. This is the equivalent of paying in cash; no retail store will ask for ID if you pay in cash, and at the end of the day, nobody knows where any one particular dollar came from.

• The Bitcoin network broadcasts transactions in a way that hides the originating IP-addresses of the transaction, so it isn't even possible to know what website or location initiated a transfer.

If I Must Verify My Identity with an Exchange Service Like Coinbase.com, How Is Bitcoin Anonymous?

When you register on an exchange service like Coinbase.com they will require that you verify your identity by providing a scanned copy of your ID and in some cases a utility bill. This is part of their own security measures.

However, this does not compromise the privacy of a transaction. While your exchange could show that an initial purchase of Bitcoin was, in fact, made by you, they have no way whatsoever of showing where those coins went, or to what purpose they were put. Transactions, a.k.a., payments, are entirely anonymous.

AcePerHead.com takes many additional measures, as advised by the developers of Bitcoin, for instance: the wallet addresses we provide are only utilized one single time by one single customer, thus there is absolutely nothing in the network linking our various customers together, and nothing linking any particular address to AcePerHead.

In summary: when an exchange verifies your identity, it means they can link the purchase of coins to you, but once you send those coins into the network, there is absolutely no way whatsoever to establish who you are paying, or even (due to other measures we take internally), how much you actually paid.

Is Bitcoin a reliable form of payment even though the Rates Fluctuate so much?

The simple answer: yes.

The extended answer is, even though the price of Bitcoins has both soared incredibly, and crashed magnificently in recent memory, and the market place is extremely volatile, this will not impact your payments at all.

When you purchase Bitcoins you do not need to buy a whole unit, as you do for say, a stock. In other words, you won’t have to make a thousands-of-dollars investment just to buy and trade in Bitcoin. In fact, you can buy increments as small as 1 Satoshi, which is the equivalent of 0.00000001 BTC. This means even I the price of a Bitcoin doubles and double again, you can still easily purchase $50, $100 or $500 worth of Bitcoin at any given time.

And as soon as you make your payment, will be credited for the current market value of the transaction, meaning you won’t be penalized for price swings that might occur soon after sending.

Using Bitcoin is the fastest, most convenient, and cost-effective payment method there is, and it provides a level of anonymitiy only previously available in cash trasactions.

AcePerHead.com, continuously finds innovative and secure ways to improve our customer’s experience with us, and adding Bitcoin to our ever-growing list of payment methods reflects our commitment to making your life easier.

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