There are a lot of issues around bitcoin and seeking to build a pretty interface to it addresses none of them.
One of my objections to bitcoin is the suggestion that I use Tor to mask my IP to keep my actual IP from occurring in the blockchain.
I think if you are telling users to use Tor to "stay safe" thats a problem already.
Second, "balance" information from your wallet is also stored in the blockchain.
Thats comforting, an IP address combined with how much bitcoin I possess. We have seen where that ended up more than once. Why not just paint a target on my forehead?
Cold storage is one solution to backing up your bitcoin and keeping it offline until needed.
Needing to "create a new bitcoin address" for every transaction, also fishy.
I would rather someone build a solution to bitcoins defiencies than see a pretty screen.
> mask my IP to keep my actual IP from occurring in the blockchain.
The blockchain does not store any IP address.
> Needing to "create a new bitcoin address" for every transaction, also fishy.
Creating a new bitcoin address for every transaction is not recommended and not needed. So no, it's not fishy. On the contrary, having the possibility to generate different address and using one address for one addressee is quite smart and useful.
Some effort is required in order to protect your privacy with Bitcoin. All Bitcoin transactions are stored publicly and permanently on the network, which means anyone can see the balance and transactions of any Bitcoin address. However, the identity of the owner cannot be associated with their Bitcoin address until personal information is revealed by the owner during an exchange. This is why it is recommended for Bitcoin owners to use many different Bitcoin addresses; in fact, you should create a new one each time you receive money. This is especially important for public uses such as websites. You might also want to consider hiding your computer's IP address with a tool like Tor so that it cannot be logged.
The blockchain does not store any IP address. Read about the protocol or read the specs or read the code, or easier : ask anybody.
Bitcoin is absolutely not anonymous, and not intended to be anonymous. Which does not mean that the IP address of the sender and/or receiver is stored into the blockchain. The blockchain contains txid, amount, addresses and timestamps, but no IP address.
To examplify what bitcoin.org says in your quote : If you open an account on anybitcoinstoreorwalletorexchange.com, which assigns you a deposit address or which allows you to withdraw bitcoin to one of your bitcoin address, then this website will obviously be able to match your bitcoin address to the IP you used to visit the website, which might not be in your best interest depending on the website intention. Therefore, you could use Tor. That is all.
To the point of "a new one each time you receive money", it would be better phrased as "each time you receive money from a new untrusted peer". Let's say I got an account on example.com, and want to withdraw bitcoin from this website for the first time. It is considered best practice to create a new address to receive these bitcoin. Then whenever I want to withdraw from this website again, I could use the same address. This is the reason why bitcoin addresses can be labeled in the bitcoin software. Think of the tuple (sender_address, receiver_address) as a private key for a specific transaction funnel.
One of my objections to bitcoin is the suggestion that I use Tor to mask my IP to keep my actual IP from occurring in the blockchain.
I think if you are telling users to use Tor to "stay safe" thats a problem already.
Second, "balance" information from your wallet is also stored in the blockchain.
Thats comforting, an IP address combined with how much bitcoin I possess. We have seen where that ended up more than once. Why not just paint a target on my forehead?
Cold storage is one solution to backing up your bitcoin and keeping it offline until needed.
Needing to "create a new bitcoin address" for every transaction, also fishy.
I would rather someone build a solution to bitcoins defiencies than see a pretty screen.