Bitcoin's Pseudonymous Nature and Privacy Concerns

Bitcoin operates on a system where all transactions are recorded on a publicly available database. While this allows for transparency and the ability to audit the supply of bitcoin, it also means that all transactions can be tracked. Bitcoin addresses are pseudonymous, meaning that they are not inherently linked to personal information such as a phone number, name, or physical address. This Pseudonymity allows for privacy while maintaining the ability to audit bitcoin supply.