but all transactions are public [1] Thus once you inform gov which are your bitcoin wallets, they can look through the block chain. Ironically, this means they will have much much more info on you than if they just had your bank account number.
Privacy/security-conscious bitcoin user can have thousands of bitcoin addresses (one for each transaction, the recommended way of using by the official client.) Also off-the-chain transactions are possible on several wallet services.
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how does some gov determine the bitcoin income? isn't the mining and trading anonymous?
The same as cash income - primary way is that you report it yourself; secondary way is auditing suspected violators, possibly involving policework.
"Anonymous" in the sense of "broadcast to the entire network."
but all transactions are public [1] Thus once you inform gov which are your bitcoin wallets, they can look through the block chain. Ironically, this means they will have much much more info on you than if they just had your bank account number.
[1] https://en.bitcoin.it/wiki/Transactions
Privacy/security-conscious bitcoin user can have thousands of bitcoin addresses (one for each transaction, the recommended way of using by the official client.) Also off-the-chain transactions are possible on several wallet services.
It's anonymous until you exchange your Bitcoins for Euros/Other currency.