How can you people get on here and rail against bitcoin so much without even understanding what you are talking about? Especially you, Poodlebrain, you always try to discuss the technical details and you get it wrong every time. At least your cohorts avoid the details because they know they don't know what the frick they are talking about.
If the system needs to know who was the owner for validation purposes, then how can ownership be anonymous?
Randomly generated private-public key pair. You don't even have to even be on a computer or online to have bitcoins sent to you. You can store your private key in your brain if you so choose.
Ownership of the wallet may be anonymous, but governments and law enforcement can use techniques like traffic analysis to trace ownership of wallets.
This is very expensive, and success is not guaranteed. And there are many ways to make it even more difficult than it is by default.
The only way to avoid being traced is to use a wallet one time
but that isn't practical as it requires memorizing separate passwords for each wallet created
What the frick are you talking about?
as well as using different internet access points for transactions to avoid detection
There are easy ways around this.
That level of effort would be an inconvenience that most would not bother to make.
Tracking transactions even when the user takes no precautions is already extremely hard. When the user takes any precautions, it becomes so difficult as to not be cost effective. In other words, it might cost 2x
to investigate x
amount of tax evasion.