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How to Hide Your Bitcoins from the Government Authorities?

hiding bitcoin from the government
hiding bitcoin from the government

Understand methods to evade the traceability by the government.

Decentralised cryptocurrency under pressure

The government financial organizations along with some of the most prominent countries around the world seem to be completely devastated, by the adoption of bitcoin by the masses. It has effectively won the hearts of the people who were down in the dumps with the Government’s control over their financial assets. The financial crisis was the threshold, post which the outrage of the people knew no bounds and their focus shifted towards bitcoin, as it was the most powerful decentralized form of Financial economy which they could rely upon.

Regardless, bitcoin are being adopted by some countries as they have been able to understand the potential of the Blockchain Technology behind it. They even realized the plus points which the bitcoin can bring towards the financial sector. Due to this disruptive nature towards the financial system, the financial authorities of various countries are looking forward to controlling these Crypto assets as they fear that their economic system might become obsolete. But it is a bitter fact that the value which we generate through our hard work should remain under control but not any other centralised authority but as human beings we live in societies and we need to comply with some rules and regulations that is framed by the government, which has led to the regulation of the cryptocurrencies in some of the countries. but there is always a way out and we can dodge the legal compliances of regulations on our cryptocurrencies in a number of ways discussed below.

Using the Tor browser

Tor stands for The Onion Router and is a well-known community which helps in disconnecting the IP address of any request made through the Tor network from its server. When a client initiates a request, his request first enters the Tor network where the request passes through a number of internal encrypted nodes of the network, and finally reaches the server hence tracking the IP address of the original client is made difficult.

Using HD Wallets

HD stands for hierarchical hierarchical deterministic where the wallet generate new public Bitcoin addresses each time a user-initiated transaction since the public address is different each time it becomes difficult to connect a particular Bitcoin address with an identity there are a number of Wallets like Ledger Nano S, MyCelium, Trezor, etc which provide this kind of service. It is however known that the Distributed Technology was inherently designed to protect the investor’s assets but as Theory is far from Practicality lets understand this by an example. A Bitcoin user owns a stationery shop where he accepts Bitcoins, suddenly few robbers barge into his shop and threaten him to hand over all the money but he refuses to agree the fact that he had done a lot of Business and had made money. The robbers can check the balance and all the transactions related to that particular public address which the shop owner had displayed in his shop.

Using VPN

A Virtual Private Network provides a service to route all the internet traffic through a number of different nodes before reaching the server. They don’t even track the history of a particular user to maintain utmost privacy. The VPN might anyway leak the information to the Government when forced by it. This is a bottleneck in this method.

Using escrow services provided by mediators like can also be used where registration should be done by using a random name and email address generator in order to avoid traceability. In case of VPN or Tor network, if a particular user uses services provided by KYC enabled platforms such as Coinbase, then such methods become obsolete.


It is believed, these days, that using Bitcoins as the payment method in a variety of e-commerce websites provide the users complete anonymity. That is certainly true, only until the government comes forward and tries to find out people who are not filing there Crypto profits and evading from taxes, by tracking the public address that user uses on the blockchain network. As we all know, that all the transactions which happen on the Bitcoin network, are stored on a Distributed Ledger, throughout the world. Hence anyone can view a public address and check the number of Bitcoins in it and a user’s identity is disclosed by tracking the IP address that he uses to perform such transactions.