In reply to wek120.

Bitcoin is absolutely compatible with KYC. Just look at the major Bitcoin exchanges operating in the U.S. today. Bitcoin addresses are just as easily attributable and traceable to individuals as banking account or credit card numbers.

Yes, Bitcoin can be transferred to an "unknown" address, but this is no different than withdrawing cash. In fact, in this regard, Bitcoin is even less anonymous than cash because all the transaction details are permanently recorded in the blockchain.

The argument against Bitcoin on the basis of its anonymity is nothing but a smokescreen. In reality, criminal money transfers in Bitcoin are much easier for police to trace than briefcases full of Benjamins, diamonds, or Swiss banks.