Stupid Question: is Bitcoin Really Anonymous?

self.Bitcoin11d ago
I suspect this question’s been asked before but I don’t see it asked and answered in a way that I understand. A friend recently told me that he thinks bitcoin was actually developed by the NSA because it’s the perfect way to track all transactions. Once one has the Blockchain, one can trace back all transactions to their owners. I’ve heard that bitcoin is anonymous, that if you have bitcoin and spend it on something then there’s no way for anyone to know who bought whatever it is. After my friend’s assertion , I thought about it a bit. I seems to me that if I buy bitcoin, say by credit card, that purchase transaction goes on the blockchain, and there’s some sort of a link from the transaction to my credit card (whoever I bought it from has that link). If I then spend some bitcoin, then wouldn’t the new blockchain transaction be traceable back to my original transaction, then back to my credit card? So theoretically back to me? This can’t be right, otherwise it would seem that bitcoin transactions are very traceable. I feel like I must not be thinking about this correctly.