[ajross]

You're right. I was imprecise. The transactions themselves are trackable, so with backups you know to "who" your specific bitcoins were transfered. But the "who" is just a number, and anonymous. And you can create as many identities as you want.

Essentially: bitcoins are anonymous because money laundering in the bitcoin world is perfect and free.

[wmf]

Eventually the money has to come out somewhere, though.