The same anonymity and untraceability of that crumpled paper money in your pocket is now available in electronic form.

FORBES: TORwallet Sparks Trust Without Jurisdiction Debate

Coinbase has put the money in the cloud, making it far easier for people to use, but sacrificing the untraceability of the money.

FORBES: Living On Bitcoin For A Week: The Journey Begins

By default, bitcoin may not offer anonymity and untraceability like our paper cash today, but it is better described as user-defined anonymity because the decision to reveal identity and usage patterns resides solely with the bitcoin user.

FORBES: Bitcoin Obliterates 'The State Theory Of Money'