Snowden Says Bitcoin Is Not Private

Speaking at a decentralised Internet conference, NSA whistleblower Edward Snowden has warned that Bitcoin’s public ledger is a “long-lasting flaw” that has large implications for the overall privacy of the cryptocurrency. 

Bitcoin is built on a piece of technology called the blockchain, which is a record of transactions that’s available to view by anyone. It’s also decentralised, meaning that its data is held in multiple locations all around the world, without being in the control of one single organisation.

Although Bitcoin has gained a reputation as an anonymous means of purchasing illegal goods on the dark net, the public ledger means that it’s actually possible for anyone to view the transactions that are taking place, even if the blockchain doesn’t tell you who each of its digital wallets belongs to.

Snowden believes this could be a godsend for any governments that are looking to outlaw the crypto-currency. The ability to trace transactions means a law enforcement agency could, in theory, track a Bitcoin transaction that’s gone to a wallet known to be used for illegal activities, and follow the transactions until they end up at an exchange like Coinbase. Once the money is exchanged into a real world currency, the identity of its owner could be revealed.

The Privacy Question
Snowden, as reported by Coindesk, says that these privacy concerns are a far bigger danger to Bitcoin than the transaction limit, which governs how many transactions the network can process at a time.

“Everybody is focused on the transaction rate limitations of bitcoin being its central flaw, and that is a major one…the much larger structural flaw, the long-lasting flaw, is its public ledger,” Snowden said, adding that he doesn’t think “Bitcoin will last forever”.

That’s not to say the transaction limit isn’t a problem. In recent months the popularity of Bitcoin has put a strain on the network as a result of this transaction limit, meaning that even online criminals are moving away from the currency.

Although there are methods of increasing the privacy of transactions on the blockchain (such as by using cryptocurrency tumblers) Snowden instead sees more promise in cryptocurrencies built from the ground up to prioritise privacy, such as Zcash.

Trusted Reviews

You Might Also Read: 

Bitcoin Exchanges Under Siege:

Crypto-Mining Is A Growing Epidemic:

 

« Google Launches An Initiative To Tackle Fake News
Staying One Step Ahead Of The Cyber Spies »

Infosecurity Europe
CyberSecurity Jobsite
Perimeter 81

Directory of Suppliers

Infosecurity Europe, 3-5 June 2025, ExCel London

Infosecurity Europe, 3-5 June 2025, ExCel London

This year, Infosecurity Europe marks 30 years of bringing the global cybersecurity community together to further our joint mission of Building a Safer Cyber World.

TÜV SÜD Academy UK

TÜV SÜD Academy UK

TÜV SÜD offers expert-led cybersecurity training to help organisations safeguard their operations and data.

Directory of Cyber Security Suppliers

Directory of Cyber Security Suppliers

Our Supplier Directory lists 7,000+ specialist cyber security service providers in 128 countries worldwide. IS YOUR ORGANISATION LISTED?

North Infosec Testing (North IT)

North Infosec Testing (North IT)

North IT (North Infosec Testing) are an award-winning provider of web, software, and application penetration testing.

Clayden Law

Clayden Law

Clayden Law advise global businesses that buy and sell technology products and services. We are experts in information technology, data privacy and cybersecurity law.

Synovum

Synovum

Synovum was formed with the intention to provide high quality advice, consultancy, training and project management services to clients in all sectors of industry.

Infoblox

Infoblox

Infoblox solutions help businesses automate complex network control functions to reduce costs, increase security and maximize uptime.

Veeam

Veeam

Veeam is the leader in intelligent data management for the Hyper-Available Enterprise.

S2 Grupo

S2 Grupo

S2 Grupo is the benchmark company in Europe and Latin America, for Cyber Intelligence and mission critical systems operations.

ID Agent

ID Agent

ID Agent provides a comprehensive set of threat intelligence and identity monitoring solutions.

DomainTools

DomainTools

DomainTools is the global leader for internet intelligence and the first place security practitioners go when they need to know.

Remediant

Remediant

Remediant is the leader in Precision Privileged Access Management. We protect organizations from ransomware and data theft via stolen credentials and lateral movement.

Uniwan

Uniwan

Uniwan is an IT services company specializing in networking and security.

Cyberport

Cyberport

Cyberport is focused on facilitating the growth of major technology trends such as FinTech and cybersecurity as well as the emerging technologies of AI, big data and blockchain.

SurePassID

SurePassID

SurePassID is a provider of highly secure, highly extensible multi-factor authentication (MFA) solutions.

ANSEC IA

ANSEC IA

ANSEC is a consultancy practice providing independent Information Assurance and IT Security focussed services to customers throughout the UK, Ireland and internationally.

Input Output (IOHK)

Input Output (IOHK)

IOHK is one of the world's pre-eminent blockchain infrastructure research and engineering companies.

IONOS

IONOS

IONOS is a leading provider of cloud infrastructure, cloud services, and hosting with more than 8.5 million customers contracts.

WBM Technologies

WBM Technologies

WBM Technologies is a Western Canadian leader in the provision of outcomes-driven information technology solutions.

Iron EagleX

Iron EagleX

Iron EagleX deliver engineering solutions in cloud computing, big data, cyber, and machine learning technologies to US Government customers.

Auria

Auria

Auria advances complex space, missile, and cyber operations with visionary solutions and software.