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Every single exchange I've used requires providing multiple forms of government ID. Practically speaking, most Bitcoin users identify themselves in this manner. Yeah, there's localbitcoins.com but just because it's technically possible to do doesn't mean that it is a practical difference if very few people do it.

Don't get me wrong, I agree that it's generally a problem that all of these institutions know your name and address. But to be honest, I trust my bank to better protect my personal information than some random Bitcoin exchange.




But with Bitcoin you don't have to use any exchange. You can get paid directly in Bitcoin for goods and services.

With fiat, there is no way to do digital transactions without attaching your name and address.


> You can get paid directly in Bitcoin for goods and services.

While I do understand why this is valuable, no government accepts taxes to be paid in Bitcoin (nor do banks give out loans in Bitcoin). As a result, everyone will need to convert some of their Bitcoin to fiat eventually, allowing for de-anonymisation. Not to mention that basically nobody gets paid in Bitcoin (personally there's no way I would accept my wage be paid in a currency that is that volatile).

> With fiat, there is no way to do digital transactions without attaching your name and address.

Taler is a system that can work on any medium of exchange (fiat, cryptocurrency, sheep, whatever) and doesn't attach your name and address to all transactions.




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