Like any other currency, Bitcoin is designed to allow its users to make and receive payments with an acceptable level of privacy. However, Bitcoin is not anonymous, and therefore does not provide the same level of privacy as cash. Using Bitcoin leaves a lot of public records. There are a number of mechanisms in place to protect user privacy, and more are being developed. However, there is still work to be done before the majority of Bitcoin users are using these features properly.
Some people are concerned that private transactions in Bitcoin could be used for illegal purposes. It is worth noting that Bitcoin will undoubtedly be subject to similar regulations that already operate within the existing financial system. Bitcoin is no more anonymous than cash, and is unlikely to hinder criminal investigations. In addition, Bitcoin is designed to prevent a wide range of financial crimes.
