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How can someone including governments and hackers can find the owner of bitcoin wallet or the company that has offered that bitcoin wallet to the owner ?

If they have someone's bitcoin wallet address can they understand who is the owner ?

If they have someone's bitcoin wallet address can they understand that wallet belongs to which broker?

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BitCoin provides anonymity but not unlinkability. This mean that BitCoin transactions are public and can be traced.

Link a BitCoin address to a real identity is not easy and there isn't a standard procedure to do that. But there are many approaches of how someone could try to know to what person one address belongs.

For example, when you send money to an exchange or make a payment, you're linking your address with your identity. So, the exchange or the person that you're paying, now they know that you're the owner of that address. The goverment may have a legal way to demand for that information to an exchange, for example. Note that the addresses used by exchanges are often of public knowledge and there are studies about that, but your identity is not compromised, except that the exchange is hacked.

There are also other ways to try to identify someone's addresss. And there are ways to try to mix BitCoin payments so they can't be traced. If you want full anonymity and unlinkability, you should use other coins as Monero.

If you want to know more about this complex topic, I recommend this lecture.

  • Hi fsinisi90 Thanks for your answer. I want to buy bitcoin from some sites like localbitcoins.com ,because I do not know who the seller is I worry that Seller might have earned the bitcoins through illegal ways like drug dealing or stealing other people money and I worry that it might make a problem for me in the future if I but those bitcoins for instance the government or police might arrest me and ask me questions that why I have bought bitcoins from criminals this stops me from buying bitcoin on localbitcoins .Do you think it is something that I should worry about it ? – William10 Sep 12 '17 at 4:17
  • No, I don't think so. If you can justify your funds, that means that you didn't do anything ilegal. The ones that have to verify their incoming funds (aka KYC - know your customer) are the exchanges, because they have to follow regulations, but in this case you're an individual buying Bitcoins. – fsinisi90 Sep 15 '17 at 18:25

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