General Discussion  - 
 
I know that not everyone cares about privacy in their transactions. I wrote this because of the many new users that might think Coinbase Wallet is just like the main bitcoin client.
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Brad Dillon's profile photoJon Matonis's profile photoMex Fox's profile photoSteven Law's profile photo
22 comments
Mex Fox
 
Is it possible To buy bitcoins with the Bank Account anonym? I think the FBI can trace the Route Bank account -> btc wallet -> payment right? So i always buy bitcoins cash .. 
 
I automatically assume that every web site I deal with logs everything I do forever and will surrender that information on demand. Privacy always comes at the expense of convenience.
 
+Justus Ranvier kind of what I generally 'figure'.

 I'm already on a list somewhere if I'm of any interest to authorities and every online transaction has built in risks that I deal with for the convenience.  
 
I concur with the article.

@Jon Matonis Wondering what your thoughts are on MtGOX. Are they a similar operation in your opinion?
 
They are all regressing to the mean on compliance. Gox has higher limits and even though Japan isn't much better than US jurisdiction, Gox doesn't have the offensive bank account password linking which removes any excuse that someone else used your credentials and identity documents.
 
If Bitcoin was easier to obtain through means I could trust (and not feel like I'm doing a drug deal with all the hoops I have to jump), I wouldn't use a service like Coinbase. I think once adoption becomes better, the problem will be abated (see the bitcoin atm posted last week for a perfect example of a solution), but until then I need to get into the system quickly and without sending my money through 15 intermediaries at 1%+ per hop.

Caution is strongly advised when dealing with Coinbase

Of course, but I use caution with all those I have partnerships with or uses services of.
 
+Kevin Peno Then why use bitcoin at all? You get the same convenience and ease of use with Visa/MC and you don't have to jump through all the hoops. The services that you want to pay all probably accept PayPal. It amazes me why people are attracted to bitcoin without the optional privacy. Buying BTC from Coinbase is like buying weed from the DEA.
 
I get the privacy long term and I'm trying to promote the system. How can I promote it without the ability to transact with it? Me using a bank card doesn't help bitcoin grow. If bitcoin doesn't grow it will continue to feel like a drug deal just to obtain bitcoins to use.

If you want mass appeal, you need to provide solutions. Coinbase has. Its not the best solution, I'd rather something like the ATM I talked about to keep my anonymity, but for now at least I get what I want in order to help the system grow.
 
Buying BTC from Coinbase is like buying weed from the DEA.

Hardly. At the moment Bitcoin isn't illegal (in my state weed is actually completely legal). However, I absolutely agree that it is possible that in the future they could be similar. Tread with caution, but don't dismiss it because it doesn't fit your perfect world. Provide a solution that does.
 
You can still have privacy, or at least plausible deniability, while using services like Coinbase.

I've purchased bitcoins there but I spent them already, as far as anyone can tell by looking at the blockchain.
 
If I'm not looking to spend them hardly ever, just diversifying where I put extra "cash" in some sense... is coinbase not a good place to keep them then?
 
Good place to buy if you want "easy", but I don't store mine there, nor do I make purchases from that wallet. Get another wallet and put your holdings there (unless you plan to sell back to coinbase).
 
It would be better to forward them on to your own local standalone bitcoin client and make a backup of the wallet on USB stick or something.
 
+Kevin Peno well, I bought some with coinbase but if I don't want to keep them there.. where do I keep them, really, I guess in my case think of it like an online safe?  I don't intend to really spend them anytime soon... I'm just stacking silver, gold, copper, lead, and now some bitcoin... 
 
I guess in my case think of it like an online safe?

Probably, but coinbase doesn't give you a wallet key, so you are fully reliant on them being benevolent. Storing in an external wallet would be best.

I like blockchain.info's wallets because I can have access to my wallet on the go. It also integrates a 2-factor auth system and maintains no information on your actual key (the key is AES encrypted on the client side). They support a number of methods to automatically backup your wallet and keys as well (which is pretty nice, imo).

However, since you are just storing them for now, and not spending, I'd say a paper wallet or USB key option would be excellent for you. You could even keep both in your safe at home and know that you'll be able to access the coins whenever you need to in the future. You also don't need to bring the key online to deposit more coins into it (it can sit in your safe until you're ready to withdraw).

https://en.bitcoin.it/wiki/Paper_wallet
 
+Kevin Peno good info, thanks, yeah I think it would be likely ideal then to have a USB copy on some detached hardware at my house and a paper copy in my real safe right along next to my other 'stuff' 
 
In my opinion blockchain.info is the best mobile wallet to store small amounts for convenient spending.

An offline Armory wallet is the best for long term storage, and as a bonus you can import your blockchain.info private key into your Armory wallet so that you'll be able to spend those funds even if their site goes down.
 
The quality of Bitcoin's anonymity as well as it's extreme resistance to censorship by governments are the two main features which make it more of a real money than the currency individuals are compelled to use through state edict. 
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