Originally Posted by
donkdowndonedied
One can create a wallet without even TOUCHING the network. Meaning I could request payment, receive it, but never put out _any_ trace that I am the owner outside of my private computer. Until those bitcoins are traded, I don't believe there is even any trace on the bitcoin network. It isn't like someone can just crack (generate private keys) the wallet and then trace whoever owns it. It isn't near that simple.
Not sure what you are going for here. Yes you can create a wallet without hitting up any network, but you cannot receive any payment without it going through the network. If you had an empty wallet, and you put some btc into it, doesn't it get recorded in the block chain by necessity? IF it ain't in the blockchain, it doesn't exist. Granted nobody has your name or anything like that, just your IP address where you were when you did the transaction and the addys/signature you use, but in a lot of cases, that's more than enough to get an investigation started. Every single transaction is public, by design, and any time they are moved/split/sold/used/tried to launder, the trail gets bigger. I cannot imagine that when something serious goes down and the good folks at the Treasury Dept turn their vast electronic resources onto the issue, they won't be able to find/identify whomever they need to. All well and good if you can create a wallet and get coins in there anonymously, but guess what? They're pretty much useless unless you can use them. And when you do anything at all with them, you are creating a longer public trail, which they'll obv already be looking for, and spot your transactions immediately.
There is no real veil of secrecy with bitcoins. Cryptography, encryption, whatever, that's there for the creation of the bitcoins themselves, and the sending and receiving and the whatnot, but the coins always leave a trail, and large amounts of coins are virtually impossible to anonymize.